Qatar index rebounds as local investors go on buying spree

02/12/2015 08:13 AST

Qatari stock market regained its previous session’s lost ground yesterday as the benchmark index edged up 4.40 percent, or 444.24 points, to finish at 10,535 points.

The bourse’s benchmark index declined 4.4 percent on Monday as MSCI added overseas-listed Chinese companies to its index, diluting Qatar’s weighting.

Barring Transport sector, the entire sector indexes climbed higher yesterday, led by real estate and telecoms. Real estate sector rose 6.93 percent, while telecoms rebounded by 6.36 percent. Local institutional investors were the net buyers. Monday’s beaten down real estate shares lured bargain hunters. The entire real estate stocks surged yesterday, with Barwa hitting the maximum permissible limit of 10 percent. UDC surged 8.42 percent, while Ezdan jumped 5.69 percent.

Gulf International, which tumbled 9.4 percent in the previous session after it was deleted by the MSCI from its emerging market index, soared 10 percent. Overall, the industrial sector was up 4.37 percent. Qatar Electricity and Water advanced 7.69 percent and the bellwether Industries Qatar rose 5.47 percent.

Telecom stock Ooredoo soared 9.09 percent. Vodafone slipped 0.41 percent. Vodafone yesterday named its new CEO. Among the banking stocks, Masraf Al Rayan, QIIB and QNB were the top gainers. Masraf Al Rayan gained 6.16 percent.

“Yesterday’s sharp fall of the market was a one-off event, largely magnified by lack of buying interest,” Reuters quoted a Doha-based portfolio manager as saying. Local and regional investors were buying, he added.

Elsewhere, the Saudi stock index rose 0.7 percent in the heaviest trade so far this week as miner Ma’aden added 2.6 percent. Egypt’s index climbed 1.1 percent to 6,425 points, bouncing from near technical support on the November low of 6,302 points. Locals were net buyers of stocks while foreigners continued to sell, according to exchange data. The Dubai and Abu Dhabi markets were closed for National Day holidays.

The Peninsula