DOHA: Qatar’s bourse hit a record closing high yesterday ahead of MSCI raising the weights of three Doha-listed firms in its emerging market index. Other Gulf exchanges were also upbeat as investors shrugged off a renewed drop in oil prices.
The main Qatari index rose 0.7 percent to 13,776 points, up 33 percent in 2014.
Industries Qatar (IQ) was the main support, rising 1.4 percent. IQ has gained 10.5 percent since it posted a 38 percent drop in second-quarter profit on August 10, missing analysts’ estimates.
The stock’s surge is apparently due to the planned increase in the company’s weighting in MSCI’s index, and buying by dividend-seeking investors.
“IQ’s (dividend) yield could increase, the company is going to be accumulating cash as its planned capital expenditure is going to be much lower over the coming years,” said Fahd Iqbal, Head of Middle East Research, Credit Suisse.
“Qatar’s dividend yields mean you can still generate a decent return.”
In addition to IQ, Qatar Islamic Bank, which rose 6.0 percent yesterday, and Qatar National Bank, which ended flat, are the two other Doha firms that will have added weight in MSCI’s index from the end of this month.REUTERS