Merger talks of Qatari banks boost stocks; QSE up 89 points

Market capitalisation of QSE rises almost QR3 billion to QR523.92 bn

QATAR’S stock market jumped on Wednesday, boosted by Masraf Al Rayan and Al Khaliji Commercial Bank after the lenders said they had started merger talks.

Qatar Stock Exchange (QSE) index gained 89.20 points, or 0.99 percent when the bourse closed trading at 9,087.76 points on

Wednesday.

The rise was mainly triggered by a 4.97 percent jump in Masraf Al Rayan. Al Khaliji Commercial Bank, which is not part of the index, gained the maximum daily limit of 10 percent.

According to reports, the merger could create a combined entity with more than QR164 billion ($45 billion) in total assets.

“The potential merger will lead to the creation of one of the largest Sharia-compliant banks in Qatar and the Middle East,” the banks said in a filing.

The proposed merger is subject to the approval of the Qatar Central Bank, the Qatar Financial Markets Authority, the Ministry of Commerce and Industry, and other relevant official bodies and the approval of the shareholders in each of Al Rayan and Al Khaliji after the completion of a detailed legal and financial due diligence.

The merger talks also helped the banking sector index emerge as the best sector index with a gain of over 1.5 percent.

The day also saw five of the seven sector indices close in the positive territory.

The volume of shares traded decreased to 420.928 on Wednesday from 502.722 million on Tuesday and the value of shares decreased to QR628.938 million from QR681.030 million on Tuesday.

Market capitalisation of QSE rose almost QR3 billion to QR523.92 billion on the day that saw both local and foreign institutional investors remain bullish throughout the day. GCC institutional investors also remained net buyers at the close of the trading session.