Qatar index up 4% as investors believe slump exaggerated

UAE MARKETS TO REOPEN AFTER THREE DAYS DUE TO NATIONAL DAY CELEBRATIONS

Qatar stocks jumped more than 4 per cent in trade yesterday, led by banks amid a firm belief by investors that the slump was exaggerated.

The Qatar Exchange index closed 4.4 per cent higher at the day’s high of 10,535.05.

“The sell down at the end of November was overdone, so it’s a reaction to that,” Sanyalaksna Manibhandu, manager of Research, National Bank of Abu Dhabi Securities.

Qatar National Bank jumped more than 5 per cent to end at 168 Qatari riyals (Dh167.5).

The lender accounts for about 15 per cent of the nation’s benchmark stock gauge.

Commercial Bank of Qatar ended 4.21 per cent higher at 47 riyals. International Islamic Bank closed 72 riyals. Al Khalij Commercial Bank closed 7.59 per cent higher at 18 riyals.

Industries Qatar 5.47 per cent higher at 106 riyals.

National Cement Company fell more than a per cent, while United Development Co rose more than 8 per cent. Out of a total of 30 stocks traded on the exchange, the shares of 28 firms rose, while those of 10 fell.

Volumes almost halved compared to the previous session. Shares worth 680 million riyals were traded compared to more than a billion riyals a day earlier.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.74 per cent higher at 7,293.79.

Saudi Basic Industries closed 0.22 per cent higher at 90 Saudi riyals (Dh87.98), while Alinma Bank closed 0.97 per cent higher at 14.60 riyals. Dar Alarkan Real Estate Development Co. ended 1.29 per cent higher.

The Muscat Securities MSM 30 index closed 0.18 per cent higher at 5,557.73. The Kuwait Stock Exchange index closed 0.02 per cent higher at 5,803.34.

Egypt’s index rose from near technical support on the November low of 6,302 points. The index finally ended 1.07 per cent higher at 6,424.88.

Global Telecom jumped 10 per cent to 1.76 Egyptian pounds in heavy trade.

Last week, Vimpelcom said it and Global Telecom had agreed to combine their Pakistan telecommunications businesses with Warid Telecom to save money, in addition to boosting their networks and expand their mobile financial services.

Naeem brokerage said in a report on Sunday that the news was positive. It reiterated a “buy” rating for the stock with a target price of 4 pounds.

Manibhandu expects a cautious and hesitant end to 2015 amid slumping crude. “Investors would be hesitant to buy in stocks in December as no would buy for the dividend season in December as there is too much of uncertainty,” he said.

Companies in the Gulf are expected to start announcing quarterly and yearly dividends for 2015 from January.

“Also, we need to have more stability on when crude would stabilise,” he added.

Crude prices were steady yesterday, after a weak November. Oil prices have fallen almost 40 per cent in the past year amid a record surplus as global producers fight for market share.

Opec is meeting on Friday, a year after Saudi Arabia led an agreement to keep production high and drive out higher-cost shale rivals in the US.

While the group’s output slid from October, Iran and Libya are among members that have signalled plans to increase supply.

Hesitant end to 2015