DOHA: Qatar stocks jumped a huge 4.86 percent yesterday recording its largest single day gain in the recent past. Market capitalization rose to QR525bn from Monday’s QR503bn.
The benchmark index gained a substantial 444.98 point to close at 9,596.26 due to a strong buying after an ease in Syrian tension.
“The market performance reminds the replay of a 2010 scenario when market saw a 10 percent jump. Today’s rally is definitely on the hope that the possible US strike on Syria would be averted after the Russian intervention”, an analyst told The Peninsula.
Two factors pushed the stocks up yesterday-those who sold their stocks tried to get back to the market to restore the loss; also some big funds reached the market, said another local analyst.
The QE benchmark index rebounded from Monday’s three-month low and recorded its largest one-day gain in 45 months. The market hit a near five-year peak on August 22 before geopolitical tensions sparked a sell-off , Reuters reported.
The gains were mainly driven by the industrials, banking sectors and real estate sectors. While the Industrials gained a whopping 4.67 percent, the banking sector jumped 4.77 percent. The real estate index rose a staggering 5.66 percent.
The volume of the traded shares jumped to 19m from 6m and the value of shares was up to QR 690mfrom QR 260m.
Top gainer from the banking sector was Qatar National Bank which was substantially up by 6.14 percent to QR 169.40. Doha Bank was up by 4.31 percent to QR 53.20. Qatar Islamic Bank was up 2.87 percent to QR 68.00.
Industries Qatar gained 6 percent to QR153.70, United Development Company gained 9.33 percent to QR21.57 and Masraf Al Rayan up by 4.69 percent to QR29.00.
Meanwhile, bourses in the United Arab Emirates made their biggest one-day gains in nearly four years. Dubai’s index surged 8.5 percent, though it is still down 8.2 percent from its five-year peak hit on August 25; Abu Dhabi’s benchmark jumped 5.5 percent.
“The market was taking the worst-case scenario before and now it’s taking the best-case scenario - it’s hard to make anything out of this,” said Fadi Al Said, head of investments at ING Investment Management.
Saudi Arabia’s bourse rose at a more measured pace, up 2.9 percent to 7,865 points. It is still down more than four percent from last month’s peaks.
Sectors reliant on domestic demand that promise stronger earnings growth led gains — the agricultural and food sector index rose 5.0 percent and the retail index climbed 4.1 percent.
Technically, the Saudi market faces minor resistance at 8,004 points, its high early this month, before strong resistance at the August peak of 8,223.
The Peninsula /Retuers