Industry shares push QE up by 11.39 points

January 01, 2014 - 12:42:05 pm
Doha: Qatar Exchange pursued its upswing trend yesterday adding 11.39 points, or 0.11 percent,  to advance to 10,379.59 points from 10,368.20 on Monday.

The volume of the shares traded fell to 7,217,786 from 7,684,447 on Monday and the value of shares increased to QR273,765,808.64  from QR256,696,058.52 on Monday.

Among the top gainers were Industries Qatar which was up 0.90 percent to QR168.90, International Islamic Bank gained 1.48 percent to QR61.70, Doha Bank added 0.87 percent to QR58.20 and Salam International up by 1.25 percent to QR13.01.

Some of the gains were due to MSCI’s upgrade of Qatar to its emerging market index, which will be draw in some $500m of additional funds when implemented in May 2014. 

Dividends tend to be a key draw for investors in Qatar’s market at the beginning of the year but some selling pressure may impact coming sessions from Qataris cashing out to buy into the country’s first initial public offering since 2010. 

Mesaieed Petrochemical Holding Co, a unit of state-owned energy giant Qatar Petroleum plans to raise QR3.2bn ($878.8m) from the share sale, which is open only to Qatari citizens and began yesterday. The offer period runs until January 21, with trading in the shares expected to start in February. 

The Banking and Financial sector index was up 0.07 points while Consumer Goods and Services sector index rose 0.05 points. The industrial sector gained 0.49 percent while insurance sector lost 0.35 percent.

Meanwhile, bulls in Dubai were strong until the last minute of trading in 2013 with the shares index recording its biggest annual gain in eight years, while all other regional markets also climbed to end the year on a positive note.

Dubai’s bourse rose 1.1 percent to close the year 107.7 percent higher — its largest annual advance since 2005.

Its rise was underpinned by bets on future earnings growth for bluechip firms like Emaar Properties, whose 1.2 percent climb on Tuesday took the year’s gain to 103.7 percent. 

A strong recovery in Dubai’s property sector acted as a springboard for the measure’s performance in 2013, as did its macro outlook, which has further improved due to the city-state winning rights to host the World Expo 2020 and MSCI’s decision to include UAE in its emerging market index from May next year.

“In the medium to long-term perspective, we still see quality in Dubai as the city continues to expand,” said Amer Khan, senior executive officer at Shuaa Asset Management. “Any dips in the near term will be well bid.”

Abu Dhabi’s index gained 0.3 percent tao take 2013’s advance to 63.1 percent, backed by the UAE’s macro recovery.

In Saudi Arabia, the index added 0.2 percent, with 2013 gains at 25.5 percent. Local government spending and an improving global macro backdrop were positive triggers for much of the year but a labour shortage, stemming from a government crackdown on illegal workers, is weighing on the early 2014 outlook for some areas, mainly construction, retail and banks.

“The labour shortage impact will be worst in the fourth quarter for contractors and suppliers, but then there will be growth again,” said Hesham Tuffaha, a Riyadh-based fund manager, adding the labour issue will be short-lived and Q4 numbers will give an indication to growth potential in 2014.

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