By Satish Kanady
DOHA: Qatar’s bourse surged to its highest closing level ever, breaking its main index record yesterday on the back of a tenacious stock rally for six sessions in a row. The blue-chips did it with an exclamation point -- 12,939.80 blast as against the previous high closing of 12892.76 recorded on September 20, 2005.
“We are delighted to see the market break new highs - it’s testament to the strength and organisation of listed companies, and to all stakeholders involved in developing the Qatari market”, commented Rashid Al Mansoori, CEO, Qatar Exchange .
The benchmark index rose 1.34 percent yesterday pushing the bourse’s gains to 24.67 percent this year making QE the second best index performer in the Gulf and one of the fastest growing markets in the world.
Analysts attributed a combination of positive sentiments to Qatar’s stellar performance, including the investors’ expectation on imminent MSCI upgrade, better-than-expected first quarter results, rapprochement on regional rifts and the proposed big ticket projects.
Local market analyst Bashir Yousef Al Kahloud said ‘the market is flooded with MPHC money’. “Qataris got a large amount of money in a small time. They are in a reinvestment mood. If you look at the trading pattern for the past two weeks, you could see huge buying interests from local individual investors. Shares of companies like Vodafone, Mazaya and Ezdan saw a huge jump over the past two weeks,” he told The Peninsula.
There is huge amount of positive sentiment surrounding the market, volumes have doubled and we hope it’s set to be a bumper year for the equity market, Al Mansoori said.
Shares of al khaliji and Nakilat surged yesterday. Al khaliji jumped 10 percent while Nakilat soared 8.53 percent. Qatar Electricity and Water edged up 1.92 percent and Ezdan closed 9.91 percent up. Market cap saw a huge jump from QR752bn to QR770bn.