Qatar index rallies on FTSE inclusion

17/08/2016 05:33 AST

The Qatar Exchange Index posted its best day gain in two months on August 16 after index provider FTSE said it was relaxing liquidity tests for Qat­ari stocks for inclusion in its widely tracked FTSE Emerging Markets Index.

Shares in QNB, the index’s heaviest weighted stock, surged by 6.65 per cent to a 17-month high of 168.5 Qat­ari rials, after EFG Hermes analysts said the bank will be one of the key beneficiaries of an increase in foreign capital flows, once selected Qatari stocks are included in the FTSE EM Index next month.

The Qatar Exchange ended the day up 2.18 per cent at 11,371.12, its best one-day performance since June.

Shares elsewhere across the Arabian Gulf region drifted lower, as investors booked profits from recent gains, even as emerging markets hit new highs for the year.

Dubai’s headline index closed 0.42 per cent lower at 3,587.21. Shares in Emaar Properties finally broke an eight-day winning streak during which the stock has risen by nearly 12 per cent.

The developer’s shares closed 1.34 per cent lower yesterday at Dh7.34, after it denied reports that it was developing a US$1 billion project in Trabzon in the north-east of Turkey.

Emaar Malls and Dubai Parks & Resorts were among the other big laggers, closing off 2.37 per cent and 2.88 per cent. DIB ended in positive territory for its third straight day, closing 1.08 per cent higher at Dh5.60.

The Abu Dhabi Securities Exchange General Index closed 0.37 per cent lower at 4,542.84, as FGB and ADCB led a small sell-off of banking stocks. Etisalat also fell, shedding half a per cent.

The National