(MENAFN- The Peninsula) Qatar Exchange index dropped 21.24 points, or 0.18 percent, when the bourse closed at 11,858.32 points yesterday compared to 11,897.56 points on Thursday.
The market capitalisation decreased to QR631.625bn compared to QR631.952bn registered on Thursday.
The trading value decreased to QR154.27m with a volume of 3,538,778 shares from 2,378 transactions compared to QR214.58m with a volume of 4,664,524 shares from 3,097 transactions on Thursday.
Banks and financial services index gained 0.10 percent (3,121.97 points) while industries gained slightly by 0.04 percent (3,849.84 points). All other sectors ended in the red.
The Total Return Index dropped 0.18 percent (18,428.45 points). Al Rayan Islamic Index dropped 0.36 percent (4,607.46 points) and All Share Index dropped 0.16 percent (3,174.21 points).
Meanwhile, Saudi Arabia's bourse rose yesterday ahead of its opening to direct foreign investment, though it remained unclear if any foreign funds would be able to buy local shares when the new regulations take effect on Monday.
The main Saudi stock index climbed 1.3 percent, buoyed by blue chips which are seen as most likely to be targeted by foreign investors, and have been included in a provisional benchmark by index compiler MSCI. Turnover was modest.
Petrochemicals giant Saudi Basic Industries jumped 2.3 percent despite weak oil prices. Miner Ma'aden surged 3.7 percent and National Commercial Bank, the biggest Saudi Arabian lender, added 1.2 percent.
Qualified foreign investors with licences from the kingdom's Capital Market Authority will be able to buy local stocks from Monday, after previously being limited to indirect channels such as swaps.
But the CMA has yet to announce the award of any licences, and it is not clear when the agency will grant the first batch. Only one institution, Ashmore Group, has publicly declared it has applied for a licence; John Sfakianakis, Riyadh-based Middle East Director at Ashmore, told Reuters on Sunday that it expected to receive it this month. He did not elaborate.
Even if a number of foreign institutions are licensed quickly, there are other reasons to think there will not be any big surge of foreign fund inflows for many months.
Saudi equities valuations are currently high by international standards, while trading activity in general is likely to decline during the Muslim holy month of Ramadan, which will start around June 18.
Also, MSCI this month chose not to start the formal procedure for the inclusion of Saudi Arabia in its emerging markets index, saying it wanted to monitor the market's accessibility first. Some analysts have said this could delay Saudi Arabia's eventual inclusion until mid-2018, although others believe the $556 billion bourse, the largest in the Middle East, could be fast-tracked.
Passively managed funds tracking MSCI will not enter Saudi Arabia until it is included in the index. Actively managed funds may move earlier, but they will be constrained by tight restrictions on foreign ownership imposed by the regulator, and by operational issues such as a requirement for same-day settlement.
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