12/01/2011 00:00 AST
Qatar’s sovereign fund’s stake purchase in local lenders and QNB’s robust 2010 performance lifted trading substantially on Doha’s bourse, which hit more than five-month high yesterday.
The 20-stock benchmark surged 1.60% to 9,137.89 points, led by QNB, Qatar Islamic Bank (QIB), Masraf Al Rayan, International Islamic and Industries Qatar. The market is up 5.26% year-to-date.
Prime Minister HE Sheikh Hamad bin Jassim bin Jabor al-Thani said Qatar Investment Authority had decided to acquire the remaining 10% stake of the promised 20% stake in banks to further strengthen their financial positions.
The purchase is expected to take place in the first quarter (January-March) of this year.
Analysts are of the view that another 10% capital infusion was needed in view of the mammoth infrastructure spending in the country in a run up to 2022 World Cup.
“QNB’s performance has lifted the sentiments within the banking sector stocks and it is being reflected in the index,” one of the analysts said. QNB had reported a 36% jump year-on-year in its net profit to QR5.7bn in 2010.
Market capitalisation surged 1.09% or more than QR5bn to QR464.41bn mainly on large and mid cap stocks, which gained 1.5% and 0.7% respectively, even as micro caps fell 0.47%.
Maximum buying was witnessed in banks and financial institution whose index swelled 2.43%, followed by industry (1.62%), insurance (0.56%) and services (0.33%).
Of the 43 stocks; 22 gained, while 12 declined, seven were unchanged and two were not traded.
Total trading volume more than doubled to 17.73mn equities, value also more than doubled to QR715.26mn on 61% jump in transactions to 7,425.
Banks and financial institution’s trading volume more than quadrupled to 11.72mn equities, value also more than quadrupled to QR463.21mn on more than doubled deals to 3,973.
Insurance sector’s trading volume expanded 50% to 0.15mn shares, value by 39% to QR8.88mn and transactions by 13% to 152.
Industrial sector witnessed a 33% gain in trading volume to 1.56mn shares, value by 42% to QR93.77mn and deals by less than 1% to 981.
Services sector’s trading volume was up 23% to 4.31mn, value by 26% to QR149.41mn and transactions by 9% to 2,319.
Actively traded stocks (in terms of volume) were Rayan (7.25mn shares); Al khaliji (1.26mn); International Islamic (1.22mn); Barwa (1.18mn) and QIB (702,679).
Reuters adds: Stocks in the UAE slid yesterday after two property companies unveiled financing plans likely to be dilutive to minority shareholders, with Dubai’s index making its largest drop in two months.
Abu Dhabi’s Aldar Properties slid 4.6% after the indebted developer said it wants to issue a convertible bond and sell assets.
Dubai builder Arabtec fell 3% to a two-week low. It is planning a $108.5mn rights issue and $150mn convertible bond.
Dubai’s index fell 1.5% to 1,634 points in its biggest decline since November 8 and Abu Dhabi fell 0.5% 2,740 points, to a 2011 low.
Saudi Arabia’s index climbed 0.5% to 6,701 points as Saudi Basic Industries Corp added 1.7%. The bourse is closer to allowing foreign investors direct market access, Reuters reported on Monday.
The Kuwaiti index rose 0.05% to 6,951 points, while Oman’s edged up 0.02% to 6,919 points and the Bahraini measure dropped 0.3% to 1,425 points.
Gulf Times
Please wait...
