Qatari stocks expected to move higher

February 01, 2014 - 12:00:00 am
DOHA: After falling sharply over the past few sessions, Qatari stocks are expected to move higher in the coming weeks. With the Mesaieed Petrochemical Holding Company Holding (MPHC) IPO successfully closing, the surplus funds available with the investors are expected to be pumped into the market. 

The fact that the MPHC equity offer was oversubscribed five-times means there are a lot of funds still available with the investors, local market analysts told Al Arab. The MPCH had restricted the maximum shares allotted to individual applicants to 1,633 shares. 

Qatari banks were too liberal in supporting the citizens for subscribing to the MPCH shares. Many banks offered a 100 percent financing to help take part in the MPCH IPO. Since maximum shares allotted to individual applicants were restricted, the surplus fund is expected to flow into the market, analysts believe.

“The surplus funds of investors will enter the market and we are going to see a lot of buying interests in the coming weeks”, Al Arab quoted a local analyst as saying. 

The QE benchmark index lost 182.68 points or 1.61 percent in the past week. All the trading sessions, except one, ended in red. Of the total seven sector indices, five dropped, including the heavyweight Banks & Financial Services and the Industrials. Trading volume decreased by 11.95 percent compared to the previous week. The number of transactions all dropped by 5.59 percent.

The Index, however, surged 7.48 percent during January 2014. Trading value for the whole month increased by 49.07 percent compared to the previous month. Trading volume rose by 0.08 percent, while the number of transactions rose by 10.16 percent. Market capitalisation rose by 6.07 percent at the end of January 2014 to reach QR589bn.

QNB, Industries Qatar, Barwa Real Estate, Qatari Investors Group and Masraf Al Rayan were among the top gainers of the month. The Banks and Financial Services sector led the trading value in January.

The Peninsula