Doha: Qatar Exchange was down 82.14 points or 0.85 percent to 9,536.12 points yesterday from the previous closing of 9,618.26. Among the top losers were International Islamic whose share dropped 1.79 percent to QR55, Doha Bank lost 0.75 percent to QR53, Al khalij Commercial Bank fell 1.01 percent to QR18.61 and Vodafone Qatar was down by 0.99 percent to QR9.
The banking and financial sector index dropped by 0.40 points while the consumer goods and services sector index lost 0.22 points. The industrial sector index was down 1.14 points while the insurance sector index fell 1.46 points.
Meanwhile, regional shares fell yesterday after Israel carried out a joint missile test with the United States, rattling investors already worried that a possible military strike on Syria could trigger wider regional conflict.
There were no reports of missile strikes on Syria but investors were on edge. Dubai’s bourse was the hardest hit, plunging 3.7 percent to hit a seven-week low but is still up 53.4 percent year-to-date. The retail-dominated market has suffered the most from political tensions in the region, especially because of a sharp early-year rally.
Regional markets underperformed MSCI’s emerging market index , which slipped 0.2 percent, due to their proximity to Syria. “Regional markets started the day positive with a good momentum and activity but the reports of missile launch took them south,” said Ahmed Shehada, head of trading at QNB Financial Services. “We saw many orders called off and halted.” Abu Dhabi’s benchmark dropped 1.8 percent.
Saudi Arabia’s bourse snapped a four-session rally and lost 1.3 percent. Regional markets staged a recovery late last week but analysts say investors were too quick to jump back into markets like Saudi Arabia and Dubai while Syria’s fate is still unclear.
“As long as there is uncertainty on possible military action in Syria, stock markets that have gone up more than most, are vulnerable to short-term profit-taking,” said an Abu Dhabi based analyst who asked not to be identified due to company policy.
“Markets have been treating a military action too casually and this pull-back was expected. It’s difficult for people to expect the US to not do anything,” he added.
Elsewhere, Kuwait’s bourse fell 1.7 percent, down for an eighth straight session and slumping to a four-month low. “There’s a serious fear from investors about participating in the market,” said Fouad Darwish, head of brokerage at Global Investment House. “The delay on the Syria strike is causing havoc on the market.”
Darwish said clarity on the situation would be conducive for investor sentiment. Kuwait’s new listing of Warba Bank was overshadowed by geo-political tensions.
Shares in the Islamic lender rose 8.3 percent. It trades 4 million shares out of a market total of 242 million. In Cairo, the measure declined 0.9 percent to extend 2013 losses to 4.9 percent.
HIGHLIGHTS
DUBAI: The index dropped 3.7 percent to 2,489 points.
ABU DHABI: The index fell 1.8 percent to 3,734 points.
KUWAIT: The index retreated 1.7 percent to 7,596 points.
QATAR: The index fell 0.9 percent to 9,536 points.
EGYPT: The index declined 0.9 percent to 5,196 points.
SAUDI ARABIA: The index fell 1.3 percent to 7,832 points.
OMAN: The index slipped 0.5 percent to 6,695 points.
BAHRAIN: The index slipped 0.4 percent to 1,184 points.
Reuters
