An investor monitors share prices on an electronic board at the Iraq Stock Exchange in Baghdad, yesterday.
Doha/DUBAI: Qatar Exchange (QE) pursued its upswing trend yesterday, adding 32.58 points (or 0.4 percent) to advance to 8,669 points from 8,636 on Sunday, its highest finish since May 6.
Markets in the UAE fell as declines on global bourses spurred local investors to cash in some of their early-year gains.
Other Gulf markets were mixed in muted trade, while Egypt’s bourse was closed for a national holiday.
The volume of the shares traded in QE fell to 4,063,614 from 5,449,324 on Sunday and the value of shares decreased to QR213,347,452.24 from QR270,809,811.07 on Sunday.
Among the top gainers were Commercialbank of Qatar which was up 1.24 percent to QR73.40, Qatar Insurance rose 1.19 percent to QR67.90, Industries Qatar gained 0.06 percent to QR166 and Qatar Telecom was up by 2.29 percent to QR107.40.
The Banking and Financial sector index was up 0.36 points while Consumer Goods and Services sector index added 0.21 points. The industrial sector gained 0.17 points while insurance sector dropped 0.71 points.
In Dubai, Bellwether Emaar Properties dropped 0.3 percent and telecom operator du and Dubai Financial Market each fell 0.9 percent.
The emirate’s benchmark dipped 0.1 percent, easing from Sunday’s nine-month high to trim 2013 gains to 4.3 percent.
It rose 19.9 percent in 2012 to be the top performing Gulf market last year and with the bulk of these gains made in the first quarter, investors have upped their market exposure in the hope of history repeating itself.
“We’re seeing the return of retail investors that were neutral or out of the market over the previous six months,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.
Fourth-quarter corporate earnings will determine whether the rally can be sustained, he added.
Abu Dhabi’s measure fell 0.2 percent, easing from Sunday’s 18-month high.
“An improvement in the global economic sentiment is the main driver of the rally in equities over the past few weeks — headline or policy risks still exist but are waning,” said Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.
He said a US deal to stop the world’s top economy falling over the so-called “fiscal cliff”, an improving Eurozone outlook and lessening fears of a slowdown in China have bolstered Gulf investor confidence.
“The correlation of Gulf markets with international markets has dramatically increased over the past few years,” said Sarwar. “At the same time, the correlation with oil prices and revenues has fallen — this seems to be an anomaly, but is expected to continue as long as global headline risks such as euro disintegration persist.”
Oman’s bourse fell 0.2 percent, easing from Sunday’s seven-month high, after the government said it would double natural gas prices for some industrial consumers by 2015.
Oman Cement Co fell 1.4 percent, Al Anwar Ceramic Tiles Co slid 2 percent and Construction Materials Industries and Contracting Co dropped 3.5 percent.
“The reaction in the market is always severe in the beginning,” said Adel Nasr, United Securities brokerage manager.
Buying from local asset managers and pension funds drove Oman’s recent rally, Nasr said.
“High volumes are supporting, which is a sign new money is coming in. We might see more profit-taking tomorrow, after that the market will start to bounce back,” he added.
The Saudi index rose 0.2 percent to a 15-week high.
Al Rajhi Bank, the Gulf’s largest listed lender, rose 0.4 percent, while Saudi Electricity Co added 1.1 percent.
SICO estimates the Saudi bourse is trading at a trailing price-to-earnings ratio of about 12, giving a dividend yield of more than 5 percent, while earnings are expected to increase by more than 10 percent in 2013.
“This looks attractive compared to both its own historic valuations as well as global valuations,” added SICO’s Sarwar.
“The outlook on the Saudi market remains positive.”
QNA/Reuters
