By Satish Kanady
DOHA: Qatari bourse posted its best day in recent years yesterday, as investors took heart from oil rebound. The benchmark index ended 7.58 percent higher at 12,029, its biggest single day gain since early 2009. The market was up 15.90 percent year-to-date.
Foreign institutional investors and retailers were the main drivers. Analysts told The Peninsula the US regulator’s decision ‘to be patient’ on rate hikes sent the non-Qatari institutional investors bullish.
Ooredoo, Vodafone, Barwa, Ezdan and QIB were among the top gainers. Ooredoo, Vodafone and Barwa surged by 10 percent each. Ezdan soared 9.98 percent, while QIB jumped 9.91 percent. Vodafone was down 33 percent since the mid-September peak.
Energy-related stocks Gulf International and MPHC leapt 9.96 percent and 9.94 percent, respectively. Gulf International was down 40 percent since the market peaked in September. Sector-wise, Telecoms and Real Estate stocks were the best performers. The market gained QR43bn in the single day trade as the market capitalization surged to QR661bn.
The market was up across the board as it re-opened after a long weekend holidays. Of the 43 stocks, 41 advanced yesterday. A total of more than 26 million shares worth a total of QR1.25bn exchanged hands yesterday. Vodafone and Ezdan were the most heavily traded stocks. Total traded value staged a huge jump from the previous session’s QR643m. Total traded volume is up from the previous session’s 14 million shares.
Qatari market traced the rally of other GCC markets that extended their gains following the oil-triggered decline. Analysts cautioned that GCC rebound is likely to slow as oil outlook is still gloomy. A renewed drop of oil could also hit the stock market again. The market commentators said the GCC countries could lose at least half their oil revenues or around $350bn a year as crude prices plunge. A prolonged drag in oil prices will hit Gulf State hard. Qatar bourse, in line with its GCC counterparts, was among the best performing markets earlier this year. But panicked selling in recent weeks has wiped out all the years’ gains.
The value of banking stocks spiked to QR637m from the previous session’s QR232m. Value of consumer goods increased to QR65m from QR42m. Industrials’ value jumped to QR213m from QR180m, as Insurance was up QR13m from QR812,368.
The value of telecoms, the best performer of the day, climbed to QR85m from QR33m. The value of Real Estate sector, another stellar performer of the day, increased to QR186m from QR94m.The Peninsula
