QE rebounds, banks help extend rally

11/07/2014 09:19 AST

Banking stocks helped Qatar Exchange (QE) extend rally to fourth straight session and lifted the benchmark index close to the 13,000 mark, highest levels in two months.

The bourse’s main index gained 1.59 percent and closed at 12,919.63 points, rebounding from its June crash. QIB, Masraf Al Rayan and Commercial Bank of Qatar were the main supports. Among other contributors were Widam and Vodafone.

The past week saw QE Index rising by 4.39 percent. The week opened with a negative note by dropping 0.35 percent before picking up in the following sessions to finish the week by gaining 4.32 percent or 543.01 points. All the sector indices entered green territory with telecoms, banks and real estate surging the most. Market cap rose by 3.72 percent to reach QR701bn compared to the previous week.

Telecoms jumped 7.72 percent and real estate rose by 5.34 percent and banks and financial sector added 4.07 percent in the week.

However, trading value during the past week decreased by 20.95 percent to reach QR2bn. Trading volume decreased by 19.66 percent to 68 million shares. The number of total transactions fell by 19.47 percent. Masraf Al Rayan led the trading value with QR464m, accounting for 37.44 percent of the total value of the week, followed by Ezdan Holding Group and Gulf International Services.

The Banks and Financial Services led the trading value, but the combined value of banking stocks dropped to QR995m compared to the previous week’s QR1.3bn. Real estate sector’s combined value decreased to QR562m from QR596m. Industrials slipped to QR439m from QR501m.

Total traded volume of Banks and Financial Services dipped to 17 million shares in the past week compared to the previous week’s 21 million shares. Industrials sector’s volume decreased to 6 million shares from 7 million. Real estate sector, which led the trading volume in the past week, however, slipped to 23 million shares from 24 million.

The banking sector led the trading number of transactions, accounting for 32.3 percent of the total number of transactions, followed by real estate and industrials sector. Of the 43 companies listed, 38 ended higher and five fell in the past week.

The Peninsula