QE index opens week on a strong note
13 Jan 2014 - 3:24
DOHA: QE Index opened the week with a strong note extending its two-week rally on the back of receiving boost from shares in the Banks and Financial Services sector, with most investors repositioning into them ahead of a hot-anticipated result season.
The index was mainly bolstered by Banks and Financial Services sector, supported by the Industrials sector.
The index hit a fresh high with Vodafone Qatar rising the most by 3.18 percent. The 20-stock benchmark index soared 0.45 percent to 10,922 points, its highest level over the past 52-weeks. QIB, QNB, and Electricity & Water served as a strong boost to the Index .
Four out of seven sectors ended in green, with the Banks and Financial Sector rising the most. The index added 0.91 percent with the heavy weight QNB rising 1.26 percent. Islamic Holding was the best performer in the Banking and Financial services sector, gaining 2.94 percent. QIB advanced by 2.40 percent. Rayan rose 1.05 percent and Commercial bank gained 0.41 percent.Doha Bank dropped 0.79 percent.
The Industrials sector rose by 0.82 percent buoyed by Electricity and Water which soared by 1.9 percent. Industries Qatar was marginally up by 0.12 percent. Real estate sector rose 0.12 percent which saw Ezdan Holding and UDC falling 0.68 percent and 0.2 percent respectively. Telecom sector was down by 0.56 percent, with Ooredoo shedding 1.18 percent.
Market capitalisation rose to QR576bn from the prior session’s QR574bn. Of the 39 traded companies, 23 advanced, 11 declined and five closed unchanged. Traded volume stood at 6.9m and the traded value at QR349m.
QE’s continuing bull-run has proved the market expectations that the Mesaieed Petrochemical Holding Company’s (MPCH) IPO offering would drag the market down due to huge profit taking wrong. Analysts said it shows investors confidence in the market and the economy.
The Group Securities noted of the total Qatari population, an estimated 10 percent of Qatari citizens subscribed to MPHC shares during the first for days of the offerings. The subscriptions of MPCH shares are still going on at the dedicated counters of participating banks. The offerings will end on January 21.
Elsewhere, Oman and Saudi Arabia made small advances to reach new five-year peaks.
Shares in Oman’s Galfar Engineering were flat at 0.31 rials, after rocketing from 0.27 rials in the previous three trading days. The stock had been weak since October, when news emerged of a corruption probe involving some of its executives; yesterday, two Galfar officials were sentenced in the case.
Saudi’s Alinma Bank ended flat to hold at a 21-month high after it posted a 35 percent increase in fourth-quarter profit.
Markets in the United Arab Emirates were closed yesterday for a religious holiday.