QE index moves up, lifts all-time high

May 27, 2014 - 12:33:59 am

DUBAI: Stocks about to join the MSCI emerging market index supported bourses in Dubai, Abu Dhabi and Qatar yesterday while Saudi Arabia posted gains across various sectors as it hit a new six-year high.

Qatar Exchange pursued its upswing trend yesterday by adding 42.80 points, or 0.32 percent, to advance to 13,393.34 points from 13,350.54 on Sunday.

Among the top gainers were Qatar Islamic Bank which was up 1 percent to QR101.10, Industries Qatar gained 0.53 percent to QR191, Commercial Bank of Qatar added 0.44 percent to QR68.80 and Masraf Al Rayan up by 2.27 percent to QR58.60.

Abu Dhabi’s bourse led the region, rising 2.5 percent and again surpassing the psychological barrier of 5,000 points as it continued to recover from a slump caused by profit-taking last week. The index closed at 5,049 points.

Three large lenders, Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and First Gulf Bank , were the main drivers, posting gains of 7.6, 4.9 and 3.2 percent respectively. All three banks will become part of the MSCI emerging market index at the end of this week as MSCI upgrades the UAE and Qatar from frontier market status. So will developer Aldar Properties, whose shares added 4.3 percent.

The MSCI upgrade has already attracted hundreds of millions of dollars in new foreign investment and is expected to bring in more around the end of this week in the form of passive funds tracking the emerging market index. MSCI picks were also the main supports in Dubai, where the main index rose 1.9 percent. Developer Emaar Properties added 3.7 percent, Dubai Islamic Bank was up 7.5 percent and bourse operator Dubai Financial Market rose 4.2 percent.

Saudi Arabia’s main index rose 0.5 percent to 9,822 points, its highest level since May 2008, with gains in all major sectors including petrochemicals, banks and retailers. QNA/Reuters