DOHA: Qatar Exchange (QE) Index breached the 10,000 resistance level yesterday, the second time within a span of two weeks, adding 1.30 percent to hit 10,038.40 points. All the sector indices ended in green with the real estate and transportation gaining the most. The market capitalisation crossed QR548bn.
Analysts reiterated the pull factor was due to the QE’s prospective MSCI Emerging Market status. The enhancement of the market status expects increased fund inflows from new international investors, encouraging increased participation from local investors.
Reuters reported some investors are still looking out for the planned listing of Doha Global Investment Co, a $12bn investment company backed by assets from Qatar’s sovereign wealth fund.
“The listing was initially planned for late April but summer and Ramadan have slowed down the listing process; authorities have not said when the share offer may proceed. State-run Qatar Petroleum is also expected to list some units eventually.”
If the Doha Global offer does go ahead, it could have a short-term dampening effect on the market as investors withdraw money to buy the new shares. Some analysts believe it could help Qatar in the long run, however, by deepening the market and attracting more foreign investment”, Reuters reported.
In Credit Suisse’s research update, its analysts reasserted that Qatar’s upgrade to emerging market status is a milestone for its market. In the long term, analysts see a significant and exponential transformation, supported by a strong growth outlook for the market. In May 2014, when QE would be formally upgraded to the MSCI’s Emerging Market status, nearly all the stocks in the QE index stand a good chance for being upgraded to the EM status, they noted.
The volume of shares traded rose to 11.8m yesterday, from Sunday’s 5.7m. The trade value increased to QR400m from QR220m. Among the top gainers were QNB, Barwa Real Estate, Gulf International, Al Khaliji Commercial Bank and Mazaya Real Estate Company.
The bellwether QNB was up 2.05 percent to QR179.00. Barwa Real Estate gained 2.59 percent to QR25.70. Gulf International edged 2.63 percent to QR50.80. Al khalij Commercial Bank added 2.86 percent to QR17.60 and Mazaya Real Estate Company was up by 2.58 percent to QR11.94.
The Banking and Financial sector index added 1.19 points while Consumer Goods and Services sector index was up 0.58 points. The industrial sector gained 1.08 points while insurance sector rose 1.24 points. Real Estate was up 1.87 percent. While Telecoms sector rose 1.48 percent, Transportation index added 1.77 percent.