QE index plunges, closes below 12,000

 27 Jun 2014 - 0:00


By Satish Kanady
DOHA: Qatar stocks closed sharply lower yesterday as the main index fell 2.35 percent, edging down the psychological 12,000 mark for the first time 
in four months to finish at 
11,816 points. 
The bourse’s power houses were mostly in red, as QNB dropped 2.70 percent, Rayan tumbled 4.76 percent. The developer UDC edged 3.09 percent down as Vodafone and Ooredoo lost 4.83 percent and 3.39 percent, respectively.
“The situation in Iraq is rattling the investors. The Advisory Council’s decision to shoot down the proposal to exempt foreign investors in stock market from taxes has triggered the sell-off”, local analysts said.
Traditionally, the market used to witness a slowdown ahead of Ramadan due to lower activity of local retail investors. But this time the sell-off is largely triggered by foreign investors, he said.
The All Share Index and seven sectoral indices dropped and total capitalisation lost about QR14bn to QR643bn. “The market seems to be little bit risky. The blue chips may continue to break new low,” said another analyst.
The QE’s weekly data showed the index lost 637.26 points, or 5.12 percent, during the past week, extending the bear run for the fourth straight weeks and dropping the market cap by 5.54 percent or QR38bn compared to the end of the previous week.
Yesterday, the total traded value declined to QR531m from the previous session’s QR579m and traded volume decreased to 8.8 million shares from 11.3 million shares. The value of banking stocks fell to QR270m from QR286m. Value of industrials dropped to QR111m from QR109m, while real estate dropped to QR52m from 
QR58m. The telecoms fell to QR31m from QR45m.
The week saw the entire sector indices dropping sharply, with the banking sector, real estate and the telecoms losing the most. The banking sector tumbled 6.24 percent. The real estate plunged 4.89 percent and the telecoms dropped 4.80 percent. While transportation shed 4.06 percent, industrials edged 4.03 percent down. Trading value during the week decreased by 28.31 percent to reach QR2.25bn compared to QR3.15bn. Trading volume decreased by 32.43 percent to reach 45 million shares as against 66 million shares, while the number of transactions fell by 33.59 percent .
The banks and financial services led the trading value and volume during the past week. 
Maraf Al Rayan led the value accounting for 16.87 percent, followed by QNB.
Of the 43 listed companies seven ended higher in the past week, while 36 fell.
The Peninsula