Doha: Qatar Exchange index kept up its gaining momentum yesterday adding 48.54 points, or 0.50 percent, to advance to 9,667.58 points from 9,619.04 on Thursday.
The volume of the shares traded fell to 8,263,161 from 11,379,967 on Thursday and the value of shares decreased to QR313,421,065.09 from QR400,399,994.06 on Thursday.
Among the top gainers were Industries Qatar which was up 0.98 percent to QR155.00, Barwa Real Estate gained 0.20 percent to QR24.55, International Islamic Bank gained 1.80 percent to QR56.50 and Qatar Insurance rose by 1.50 percent to QR60.90.
The banking and financial sector index was added 0.48 points while consumer goods and services sector index lost 0.88 points. The industrial sector was gained 0.64 points while insurance sector added 1.68 points.
Meanwhile, Dubai’s bourse led a regional recovery in shares yesterday after US President Barack Obama delayed an imminent military strike against Syria, saying he will seek congressional consent.
Dubai’s index rose three percent, partly recouping losses from last week’s heavy retail-driven sell-off. The market is dominated by short-term, momentum traders who have knee-jerk reaction to political concerns. It is still 150 points away from the five-year peak hit on August 25.
“Dubai rebound from a sell-off today but you’ll see a lot of indecisiveness until Congress vote on Syria,” said Ahmed Shehada, head of trading at QNB Financial Services. “It’s smart to reduce risk at this point for the short-term but not completely exit the market.”
Abu Dhabi’s measure rose 1.8 percent, snapping four sessions of losses and Qatar’s benchmark climbed 0.5 percent.
“Confidence is reinstated in the market but we’ll have to wait till next week for a clearer direction going forward,” Shehada added.
The US released evidence the Syrian government used chemical weapons to attack civilians and said President Bashar Al Assad regime should not go unpunished.
US House of Representatives Speaker John Boehner plans to hold a congressional debate on the matter in the week starting September 9. Any strike, after a congressional vote, would be in mid-September at the earliest.
Ali Adou, portfolio manager at The National Investor said the rally is likely to be short-lived. “The risk will go back up after congress meetings next week.”
British Prime Minister David Cameron lost a parliamentary vote late on Thursday that ruled out its involvement in military action against Syria. French President Francois Hollande is under increasing pressure to also seek a parliamentary vote.
In Saudi Arabia, the measure climbed 1.5 percent, heading for its third gain following a 654-points correction early last-week.
There is little direct impact expected in Gulf countries from a strike on Syria, but Saudi Arabia could be more exposed to sentiment-driven reaction because of a possible military involvement. The kingdom raised its level of military alertness, sources said on Friday.
“Since the expectation for action this week has been definitely postponed, the markets this week will have a relief rally,” said John Sfakianakis, chief investment strategist at Saudi investment firm MASIC.
“You’ll see additional liquidity to buy in stocks that are at relatively good entry points compared to what they were prior to last week’s correction.”
Petrochemical shares supported the rally — the sector’s index rose 1.3 percent. Higher oil prices boosted sentiment on the sector; Brent crude made its biggest monthly gain in a year for August.
Agencies
