DOHA: Qatari bourse made its biggest one-day gain in recent weeks yesterday on the buying interests of local retail investors. The index climbed the new high rising 1.02 percent to close 11,305.87 percent. Market capitalisation rose to QR591bn from the previous session’s QR586bn.
Six out of seven sector indices ended in green, with Transportation gaining the most by 1.38 percent. Rayan, which surged 4.28 percent, lifted the Banks and Financial Services up 1.21 percent. Consumer Goods and Services also advanced 1.21 percent. While Insurance edged up by 0.81 percent, Telecom and Industrials added 0.67 percent 0.65 percent respectively. Real Estate shed 0.37 percent.
Along with Rayan, the top gainers were General Insurance (2.22 percent), Qatar Navigation (2.47 percent), QNB (0.78 percent) and QIB (0.78 percent). Al Ahli Bank, Islamic Insurance and Barwa were among the top losers.
Trading value declined to QR480m from the previous trading session’s QR595m.Trading volume rose to 13million shares from the last session’s 12million shares. Of the 41 traded companies, 27 advanced, 11 declined and 3 closed unchanged.
QE announced the suspension of International Islamic shares trading, as it was scheduled to hold its Extra-ordinary General Meeting (EGM) yesterday. Due to lack of quorum, the bank adjourned the EGM to Wednesday.
Generous dividend payments by Qatari firms traditionally attract investors during the earnings season. Analysts also say Qatar, along with Oman which gained 0.7 percent yesterday, is popular among local investors who look for safe havens after booking profits in more volatile markets.
Meanwhile, a favourable global backdrop lifted all major stock markets in the Middle East yesterday while strong earnings and positive news flow from the property sector put bourses in the United Arab Emirates ahead of the pack.
Abu Dhabi’s index surged 2.2 percent and Dubai’s measure was up 1.1 percent, both aided by property and related sectors as well as small-cap stocks which are popular among retail investors.
“Part of it obviously was due to a good lead from the international markets,” said Amer Khan, fund manager at Shuaa Asset Management. Global equity markets surged on Friday as investors set aside any fear of economic softness after a weak US jobs report.
But the UAE’s bourses are also being supported by recent quarterly earnings reports and a recovery in property prices which has enabled local companies to revive previously frozen projects and expand aggressively into new sectors and foreign markets.
Dubai builder Arabtec, whose shares had already surged earlier this month on news of a $6bn contract, gained another three percent yesterday after announcing plans to branch out into infrastructure, water, energy and financial services.
“Earnings in the UAE have been quite supportive of the rally that we’ve seen thus far,” Khan said, adding that investors expect remaining fourth-quarter financial reports to be positive as well.
Abu Dhabi’s First Gulf Bank was among the top gainers on Sunday, jumping 6.3 percent. It announced its highest ever quarterly profit at the end of January and hiked its annual dividend by 20 percent; last week, it announced plans to build an investment banking business.
Saudi Arabia’s index added 0.5 percent with gains in most sectors. However, it remains the Gulf’s laggard with a rise of just 3.3 percent so far this year, following a crackdown late last year on illegal immigrants who make up a significant part of local workforce. In the short term at least, the crackdown has made finding workers harder for some companies and driven up their costs.
The Peninsula/Reuters
