Qatari Stocks tumble on global worries, lack-lustre earnings;

23/08/2015 08:21 AST

Qatari stocks fell sharply lower for fifth straight session yesterday, amid continued global worries and a lack-lustre second quarter earnings.

The benchmark index plunged 2.49 percent or 289.51 points to finish the bearish week at 11,345.53, days after the bourse announced the listed companies, except one, recorded a 12.23 percent increase in the combined net profit on year-on-year for H1, 2015, down from 21.89 percent recorded for Q1, 2015 on year-on-year.

The European Brent crude fell by 3.4 percent or $1.65 to close the London session at $47.16 per barrel Wednesday. US crude fell by 4.3 percent or $1.82 and closed the New York session at $40.80 a barrel, the lowest close since March 2009.

All the seven sector indexes were down with Telecoms leading the decline by crashing crashing5.27 percent. Ooredoo tumbled 5.66 percent and Vodafone plunged 4.37 percent. Telecom sector index. The sector decline 11.17 percent in the past week.

Ooredoo yesterday announced it has partnered with The Group Securities to boost the liquidity. “The Liquidity Provision Service, which is sponsored by Ooredoo, is intended to improve liquidity by facilitating increased market depth and trading volumes in Ooredoo shares listed on the Qatar Stock Exchange”, it said in a regulatory filing .

QR14bn evaporated from the market yesterday. Market capitalization fell by 4.27 percent to QR599bn in the past week.

“Long-term investors can remain in the market as long as the index closes above 10,250’, analysts at Global Research said.

Real estate, banking and financial and insurance were among other sectors that weighed on the market yesterday. The entire real estate stocks ended in red. Barwa lost the most by 4.79 percent. Among the banking stocks, Masraf Al Rayan was the top loser by shedding 4.37 percent. QNB lost 2.33 percent. Industries major Industries Qatar (IQ) declined 2.26 percent.

Qatar Exchange (QE) weekly data suggested the benchmark index declined 4.32 percent in the past week. The entire sector indexes were down during the week, with Telecoms leading the decline.

Trading value increased by 15.57 percent from the previous week and volume soared 25.57 percent. The banks and financial services sector led the value, while the real estate sector led the volume during the week. Just two of the 43 listed companies ended the week higher.

“Most Middle East stock markets fell on Thursday as oil prices and global emerging market equities extended their slump, but Saudi Arabia bounced off an eight-month low and edged up after dropping for seven sessions in a row”, agencies reported.

The Peninsula