Qatari bourse index adds 75.26 points

January 22, 2014 - 12:00:00 am
Doha: Qatar Exchange index added 75.26 points, or 0.68 percent, to advance to 11,147.39 points from 11,072.13 on Monday. 

The volume of the shares traded was up at 9,174,192 from 8,940,487 on Monday and the value of shares decreased to QR432,177,151.91 from QR524,413,479.79 on Monday.

Among the top gainers were Qatar National Bank which was up 1.11 percent to QR182.30, Industries Qatar gained 1.19 percent to QR179.00, Electricity and Water added 1.17 percent to QR181.20 and Ooredoo was up by 2.23 percent to QR146.70.

The Banking and Financial sector index was up 0.30 percent while Consumer Goods and Services sector index lost 0.36 percent. The Industrial sector gained 0.68 percent while insurance sector dropped 0.14 percent.

Meanwhile, Saudi Arabia’s telecom sector helped lift the bourse yesterday after Saudi Telecom Co  (STC), its second biggest firm by market value, posted an earnings surge. Most other regional markets also gained.

STC beat analysts’ estimates as it made a net profit of SR3.62bn ($965m), up from SR393m in the prior-year period. Analysts on average forecast STC’s profit would be SR2.51bn. 

Although the profit jump was mainly due a change in STC’s method of accounting for an Indian unit, Saudi retail investors tend to look at headline numbers. 

“The main reasons for the strong reported net income are the increased cost efficiencies, which commenced in third quarter 2013,” Abdulelah Babgi, an analyst at NCB Capital in Riyadh, said in a note. “This is coupled with an improvement in income from associates.” 

The company also proposed a fourth-quarter dividend of 0.75 riyals per share, up from 0.5 riyals in the previous quarter, which helped boost the stock. 

Shares in STC jumped 5.5 percent to their highest since October 2008. Kuwait-based NBK Capital, however, cut the stock to sell from hold yesterday.

Petrochemical shares limited gains on the Saudi bourse as firms continued to post weaker-than-expected earnings.

National Industrialisation (Tasnee) fell 2.2 percent after the firm reported a 24 percent rise in fourth-quarter net profit which stood at SR300m.

It missed the NCBC estimate of SR448m and the market consensus of SR413m.

Saudi Basic Industries Corp (SABIC) slipped 2.2 percent to its lowest in January and extended declines since posting earnings that missed analysts’ forecast. 

The wider index ticked up 0.08 percent, its first gain this week. The index had been retreating after hitting a five-year high last Thursday.

In Dubai, the bourse ended an eight-session winning streak in a bout of profit-taking as investors await fourth-quarter earnings.

It slipped 0.1 percent to 3,665 points, coming off a five-year high. It is testing technical resistance at 3,625 points, the low of April 2007; a weekly close above that level would confirm a break.

“The Dubai market in now in a resistance zone where there is a good chance selling pressure will increase,” said Bruce Powers, technical analyst and president at WideVision. “A drop below today’s low at 3,658.48 is the next sign of weakness that could lead to further selling. Given today’s weak behavior, a break above today’s high this week will be suspect whether the market can keep going.”