DOHA: Qatari stocks pivoted higher yesterday after Qatar Central Securities Depository’s (QCSD) Sunday announcement that it had amended the foreign ownership percentage in the shares of Industries Qatar (IQ), QEWS, QIB and Qatar Industrial Manufacturing Company to 49 percent from 25 percent, starting yesterday.
The Qatar Stock Exchange (QSE) benchmark index added 154.94 points, or 1.76 percent to 8,936.77 to outperform the regional peers. QEWS was up by 3.98 percent as Industries Qatar soared 3.4 percent. QIB closed 3.7 percent higher.
Al Ahli, QEWS, QIB, IQ, MPHC, Commercial Bank and QNB were the top gainers of the day. Al Ahli rose 4.81 percent, while MPHC, Commercial Bank and QNB advanced by 2.59 percent, 2.15 percent and 2.10 percent, respectively. QE Index ETF ended 1.84 percent higher as Al Rayan Qatar ETF edged up 0.69 percent.
Among the seven sector, five ended green with Industrials (2.61 percent) and Banks (1.93 percent) gaining the most.
Analysts attributed yesterday’s brighter tone in stock market to higher foreign ownership ceiling, but were quick to add that the phenomenon might not last long. Some investors are also looking ahead to the start of the first quarter earnings seasons beginning next week to support the case for stocks. The QSE targets resistance is at 9,100-point mark and is likely to reach 9,360 points on the back of announcing the financial disclosures next week, market watchers expect.
QNBFS said in its 2018 Qatar equity strategy note that it is optimistic that this dividend season coupled with a recovery in non-bank profitability would reinforce/bolster Qatar’s image as an attractive dividend yield market in the future.
SICO Investment Bank noted in its quarterly results preview that Qatar’s first quarter earngings season is going to be better. Top Qatar banks are expected to deliver strong net interest income growth in Q1, 2018, supported by strong balance sheet. The earnings of Industries Qatar are estimated to grow by 7 percent on year-on-year. Ooredoo is estimated to jump 34.6 percent on quarter-on-quarter basis. While higher product prices are expected to positively impact Industries Qatar’s earnings on year-on-year, Ooredoo’s quarter-on-quarter improvement is expected to drive mainly by strong Myanmar Kyat, SICO analysts said.
Qatar Stock Exchange (QSE) CEO Rashid Al Mansouri, who is on a US tour as part of the ongoing Qatar-US Economic Forum, said Sunday the bourse will hold a series of meeting will be held with US stock exchanges and top investment funds in the US.
