By Sachin Kumar
DOHA: Sharp rebound in oil prices has boosted the performance of companies in Qatar’s stock market. Shares of the companies in oil and gas sector have surged by up to 27 percent since January-end, when crude oil prices were trading at multi-year lows. Global oversupply in oil had knocked down crude prices, from mid-2014 highs of above $100 a barrel, to 12-year lows earlier this year. Brent crude had plunged to around $27 per barrel on January 20 this year. Now oil prices have rebounded sharply by around 76 percent, driven by multiple factors. Brent crude was trading around $49.74 per barrel yesterday.
Shares of Qatar Fuel Company (woqod) have risen by around 27pc since January. The company’s shares jumped from QR119.5 on January 20 to QR152 on Monday. Similarly, shares of Nakilat have surged by 18 percent in the same duration. The company’s shares have risen from QR19.45 on January 20 to QR22.91 on Monday.
Shares gain as oil supply drops
MPHC shares traded at QR15.67 on January 20 while the scrip closed at QR18.15 on Monday, showing a rise of around 16 percent. Showing a similar uptrend, shares of Industries Qatar have jumped by around 10 percent since the end of January. Shares were trading at QR88.6 on January 20 and closed at QR96.8 on Monday.
Shares of Woqod, Nakilat and MPHC have outpaced QE Index in terms of performance. Shares of these companies have risen by 16-27 percent since January 20 while QE Index has gained around 12 percent in the same period. The index closed at 9704 points on Monday and at 8689 points on January 20.
Market capitalisation has risen from QR462.7bn on January 20 to QR252bn on Monday, showing a gain of around 13 percent.
Multiple factors are behind the sharp recovery in the prices of crude oil and the major factor was reduction in oil supply that has eased the oil glut in the international market. Global output was affected by wildfire in Canada and supply disruption in Nigeria due to attack on key pipelines and facilities.
Production in the US is also influencing prices. Domestic crude production fell by 250,000 barrels a day in May, according to Energy Information Administration, its biggest one-month decline in years. Shares of other companies have also performed well in the past months. Shares of Salam International have jumped by 15 percent, Qatar Islamic Bank by 14 percent and Qatar Industrial Manufacturing by 8 percent since January 20.
The Peninsula
By Sachin Kumar
DOHA: Sharp rebound in oil prices has boosted the performance of companies in Qatar’s stock market. Shares of the companies in oil and gas sector have surged by up to 27 percent since January-end, when crude oil prices were trading at multi-year lows. Global oversupply in oil had knocked down crude prices, from mid-2014 highs of above $100 a barrel, to 12-year lows earlier this year. Brent crude had plunged to around $27 per barrel on January 20 this year. Now oil prices have rebounded sharply by around 76 percent, driven by multiple factors. Brent crude was trading around $49.74 per barrel yesterday.
Shares of Qatar Fuel Company (woqod) have risen by around 27pc since January. The company’s shares jumped from QR119.5 on January 20 to QR152 on Monday. Similarly, shares of Nakilat have surged by 18 percent in the same duration. The company’s shares have risen from QR19.45 on January 20 to QR22.91 on Monday.
Shares gain as oil supply drops
MPHC shares traded at QR15.67 on January 20 while the scrip closed at QR18.15 on Monday, showing a rise of around 16 percent. Showing a similar uptrend, shares of Industries Qatar have jumped by around 10 percent since the end of January. Shares were trading at QR88.6 on January 20 and closed at QR96.8 on Monday.
Shares of Woqod, Nakilat and MPHC have outpaced QE Index in terms of performance. Shares of these companies have risen by 16-27 percent since January 20 while QE Index has gained around 12 percent in the same period. The index closed at 9704 points on Monday and at 8689 points on January 20.
Market capitalisation has risen from QR462.7bn on January 20 to QR252bn on Monday, showing a gain of around 13 percent.
Multiple factors are behind the sharp recovery in the prices of crude oil and the major factor was reduction in oil supply that has eased the oil glut in the international market. Global output was affected by wildfire in Canada and supply disruption in Nigeria due to attack on key pipelines and facilities.
Production in the US is also influencing prices. Domestic crude production fell by 250,000 barrels a day in May, according to Energy Information Administration, its biggest one-month decline in years. Shares of other companies have also performed well in the past months. Shares of Salam International have jumped by 15 percent, Qatar Islamic Bank by 14 percent and Qatar Industrial Manufacturing by 8 percent since January 20.
The Peninsula
