QE breaches 11,000 mark

January 14, 2014 - 2:43:39 am

DOHA: Qatar’s rallying stocks pushed the bourse’s main index beyond the psychological barrier of 11,000 points to 11,019.86 yesterday. The buoyancy in witness on Qatar Exchange (QE) for a while, say analysts, is mainly inspired by investor expectations that dividend payouts by companies for 2013 might surge to historic highs.

According to an analyst, listed entities may pay out up to a staggering QR24bn to QR25bn in cash dividend for 2013. “We hope the collective net profits of Qatari companies in 2013 to be in the range of QR39.5bn to QR40.8bn,” said an analyst. The combined net profits in 2012 were QR37.6bn.

The bourse had created a record when its benchmark index had soared to 11,148.50 in early April of 2005 when the market, then known as the Doha Stock Market (DSM), had thrown its doors open to foreign capital.

Analysts expect that some 40 of the 42 listed companies may report robust financials for the fourth and last quarter of 2013 backed by a booming economy.

And many of them are likely to declare handsome dividend. Among the companies that are expected to payout record dividend are Qatar Insurance and General Insurance, QNB, Milaha and Qatar Insurance Company (QIC). Insurance companies are expected to perform much better in 2013 as compared to the previous year.

The Peninsula

 

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