14/06/2010 00:00 AST
Some net buying support from foreign institutional investors pushed Qatari stocks up yesterday. The 20-stock index of Qatar Exchange (QE) was up 67 points, or marginally less than one percent, to 6,920.
The market capitalisation of the bourse, which has been under some pressure recently due to the yawning sovereign debt crisis in euro zone countries, though, remains above the psychologically critical level of $100bn (QR365bn) at QR371.83bn.
Some 27 of the 44 listed stocks ended higher at the close of trading with six falling and seven remaining unchanged. Major gainers were National Leasing and Qatar National Cement.
The losers, on the other hand, included Qatar Islamic Insurance and Salam International.
Trading value improved to over QR200m (QR210.52m) while volumes totalled a little more than seven million. The number of transactions which recently fell below 3,000-mark also improved to 3,657.
Meanwhile, Most Middle Eastern bourses rose yesterday, buoyed by international markets, but the rebound may be short-lived in the absence of major positive catalysts, traders said.
Qatar and Dubai were the strongest regional performers, each bourse gaining nearly one percent, as overall trading volumes exceeded last week’s levels, while Saudi Arabia and Bahrain were the only markets to fall.
“Global markets and oil prices upsurge on weekend led today’s rally. But we believe this is a short-term rebound and the market still needs more triggers for sustainable recovery,” said Osama Ibrahim Al Qinna, head of brokerage division at Oman Arab Bank.
Swiss investment bank Credit Suisse said in a statement it was upbeat about the wider region’s market prospects although concerns over sovereign debt could worry investors.
“Our strategic view on equities is that we see positive business and earnings cycles emerging as the dominant influence on markets this year, although this will be periodically interrupted by concerns over country indebtedness,” said Bassam Yammine, co-CEO of Credit Suisse in the Mena region and Head of Investment Banking & Asset Management.
Dubai’s index rose 0.9 percent led by real estate stocks. Emirates NBD fell 0.4 percent after ratings agency Moody’s downgraded the local and foreign currency debt and deposit ratings of the bank.
In Kuwait, Agility shed six percent after paying out its dividend.
Egypt’s Orascom Telecom fell another 0.5 percent and dominated trade by turnover. Last week, the stock fell 5.3 percent after talks with South Africa’s MTN Group collapsed.
A newspaper, however, said the firm is still negotiating the sale of some of its African assets, reviving hopes for a possible deal after the failed talks with MTN.
Heavyweight Saudi Basic Industries (Sabic) fell 4.3 percent, which traders attributed to profit taking. Sabic gained 5.1 percent on Saturday.
“After recent gains people like to take some profits,” said Saleh Al Onazi, vice-president of principal investment at Swicorp in Riyadh. “Still we are in an optimistic mood about the Q2 results,” he added.
Agencies
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