Qatar index extends gains after long loss

Qatar’s stock index extended gains for a second day yesterday as local and international funds stepped up buying after a long spell of weakness.

The Doha index broke an 11day losing streak on Tuesday, though the benchmark index is still down 18.5 per cent so far this year.

It has been hurt by the economic and political boycott of Qatar by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.

“The market has realised Qatar is the most undervalued market in the region. It was bound to bounce back,” said a local fund manager, adding that the banking and petrochemical sectors looked the cheapest.

Commercial Bank was the top mover among banks, rising 1.57 per cent, followed by Doha Bank, up by 1.45 per cent. In Abu Dhabi, Dana Gas was down 1.27 per cent with about 52 million shares traded, which accounted for roughly 57 per cent of the total volume on the exchange.

A London high court judge on Tuesday adjourned a trial on Dana Gas and its creditors until today after a UAE injunction issued last Sunday prevented the company from taking part in the proceedings.

The judge said the trial could proceed regardless of whether all parties were present. Shares of Dana had risen 1.3 per cent on Tuesday, before the news of the adjournment came.

Dubai’s index fell 0.6 per cent, dragged down by Shuaa Capital – the worst performer down 2.5 per cent – and Emirates Integrated Telecommunications, known as du, which lost 1.8 per cent.

The Saudi index was down 0.4 per cent. In Cairo, the index fell 0.25 per cent as only six of the top 30 shares made gains.

Meanwhile, Russia’s bank and financial shares index fell yesterday after a lender asked authorities for a bailout, while other emerging assets flatlined, awaiting the outcome of the US Federal Reserve meeting.

Emerging stocks traded just off three-year highs and sovereign bond yields have also pulled off multi-year lows, with the Fed expected to announce a decision to start paring bond holdings and provide hints of a possible December rate hike.

The Fed meeting overshadowed fresh threats from US president Donald Trump against North Korea.