QE index rebounds, adds 260.45 points

March 07, 2014 - 12:38:02 am

Doha: Qatar’s stock market bounced back yesterday after the Qatari government pledging its commitment to regional security policies and saying it would not withdraw its own ambassadors, fuelling hopes that the dispute with Saudi Arabia, the United Arab Emirates and Bahrain could be resolved.  

Those three countries decided to withdraw their ambassadors from Doha on Wednesday, saying Qatar had failed to honour a Gulf Cooperation Council agreement. 

Qatar’s stock market, which fell 2.1 percent on Wednesday because of the dispute, rebounded 2.3 percent, or 260.45 points, to  close at 11,607.03 points from 11,346.58 on Wednesday. It was the biggest one-day gain for six months.

“It’s too early to tell what the medium to long-term impact will be, but today is a reversal of the knee-jerk reaction to yesterday’s news,” said Amer Khan, senior executive officer at Shuaa Asset Management. “Historically, disagreements like these did not get publicised and this was a departure from that.”

Many analysts believe an escalation to the point where the GCC’s integrity is threatened, or where economic sanctions are imposed, is unlikely. Among the top gainers were Qatar National Bank, which was up 3.19 percent to QR191, International Islamic Bank gained 4.08 percent to QR76.50, Qatar Insurance added 2.99 percent to QR65.40 and Masraf Al Rayan was up by 3.76 percent to QR38.60 yesterday.

Meanwhile, the index dropped 164.80 points, or 1.40 percent last week. The trading value during the week decreased by 3.10 percent to reach QR3.59bn compared to QR3.71bn. 

The trading volume increased by 2.20 percent to reach 72.73 million shares against 71.16 million, while the number of transactions rose by 14.88 percent to reach 49,006 against 42,660 transactions in the previous week. 

The market capitalisation fell by 3.12 percent to reach QR662.16bn compared to QR683.47bn at the end of previous week.

Industries sector led traded value last week with 40.27 percent of the total. Banks and financial services accounted for 29.82 percent. Consumer goods and services sector accounted for 9.06 percent and real estate accounted 7.68 percent. Industries sector led traded volume with 36.21 percent of the total. 

Banks and financial services sector accounted for 23.90 percent. Real estate accounted 14.66 percent and telecoms sector accounted for 7.63 percent. 

Industries sector led traded number of transactions last week with 58.2 percent of the total. Banks and financial services sector accounted for 18.31 percent. Real estate sector accounted for 6.98 percent and consumer goods and services sector accounted for 6.64 percent.

From the 43 listed companies, 15 ended last week higher, while  27 fell and one unchanged. From these companies, Mesaieed Petrochemical Holding Company led the traded value with 25.17 percent of the total. Qatar National Bank accounted for 8.56 percent followed by Industries Qatar accounted for 8.45 percent. 

Elsewhere in the region, Saudi Arabia’s bourse rose one percent to a near six-year high as banking and retail sector shares 

climbed. Trading volume on Wednesday was the highest since May 2012, and it remained high yesterday too.

Dubai’s measure also rebounded, rising 1.3 percent after slipping 0.5 percent in the previous session. However, it stayed in the range of the last three weeks and appears to have entered a consolidation phase after spectacular gains since the end of 2012. Volume this week was the lowest since early November, another sign of waning upward momentum.

In Abu Dhabi, First Gulf Bank fell 4.2 percent as it went ex-dividend; the wider market slipped 0.8 percent.    

In Egypt, weak earnings triggered profit-taking, taking the benchmark index down 0.9 percent to 7,950 points. The index has struggled to break decisively above psychological resistance at 8,000 points since rising above it on February 23 for the first time in more than five years. 

QNA & Reuters