QE index conquers another high

May 14, 2014 - 3:37:29 am

Doha: Continuing its rising spree, Qatari bourse yesterday closed at all-time high of 13,174.74 points, gaining 107.40 points or 0.82 percent yesterday, helped by surge in shares of Qatar Insurance Company and optimism among investors about the inclusion of Qatari shares on MSCI Emerging Market Index. 

Yesterday’s gain made investors richer by QR12bn as the value of stocks on Qatar Exchange rose to QR738bn ($203bn) on Tuesday from QR726bn ($199bn) on Monday. The benchmark index previous high was 13,609 which it touched in 2005 when Qatari market was opened for foreign investors.

Shares in Qatar Insurance Company rose their daily limit of 10 percent to QR81.40 after Qatar Civil Aviation Authority said announced yesterday that the company would provide insurance services for the newly opened Hamad International Airport for a value of QR45.97bn ($12.63bn).

Most Doha-listed stocks rose ahead Index compiler MSCI’s Wednesday announcement on which companies from Qatar and the United Arab Emirates it will add to its emerging market index. The changes will take effect at the end of May, almost a year after MSCI said it would upgrade both countries to emerging market status. That decision has helped the Dubai, Abu Dhabi and Qatar bourses subsequently outperform other Gulf markets.

Stocks from the UAE and Qatar are currently included in MSCI’s frontier market index and the upgrade is expected to attract more foreign investment. Exchange data shows large inflows of foreign funds have already taken place.

“All local and international indicators are encouraging. Locally there are number of mega projects which have already started and there is also enough liquidity in the market. Investors are also gaining more confidence in local market, especially after the announcement of the inclusions of Qatari shares in MSCI Emerging Market Index,” said Abdullah Al Khatir. “Things are also encouraging at the international front and major markets around the world are moving up,” he said.

Along with Qatar Insurance, Gulf International, Al Kaleej Takaful and Ezdan Holding registered healthy rise on Tuesday. Gulf International gained 1.84 percent to QR99.80, Al Kaleej Takaful added 1.84 percent to QR38.70 and Ezdan Holding up by 10 percent to QR27.50.

“Investors need to be cautious as experts say that market fluctuate going forward. “

I do not expect that the current momentum will be sustained in near future and it is likely to fluctuate going forward,” said Al Khatir. The momentum of the market will depend on the investors’ reading of the situations around the world because they keep one eye on the index and other on the local and international developments,” he added.

Most other markets in the region also advanced. Dubai led gains as it recovered from a sharp drop earlier this week.

Out of the total 42 traded companies, 29 companies advanced on Tuesday while 11 companies declined. The volume of the shares traded up to 23.5 million from 21.5 million on Monday and the value of shares decreased to QR1.01bn from QR1.03bn Monday.

The Peninsula

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