Doha: Qatar Exchange ended in the green yesterday adding 4.34 points (or 0.05 percent) to advance to 8,335.48 points from 8,331.14 on Thursday. Among the top gainers were Commercial Bank of Qatar which was up 1 percent to QR70.80, Qatar Insurance rose 1.19 percent to QR67.90, Qatar Telecom gained 1.19 percent to QR101.70 and Gulf International was up by 0.67 percent to QR29.90. The banking and financial sector index dropped 3.89 points, the consumer goods and services sector index gained 10.27 points, the industrial sector rose 4.50 points while the insurance sector added 34.02 points.
Meanwhile, Egypt’s bourse rallied to a fresh three-week high yesterday as foreign investors bought into risk but Egyptians were net sellers after a vote tally showed a narrow favour for a constitution shaped by Islamists.
Cairo’s benchmark index rose 2.7 percent to its highest close since November 22. All stocks, except two, gained on the bourse. Palm Hills Development climbed 5.4 percent, Orascom Telecom and El Saeed Contracting added 0.8 and 5.1 percent respectively. The trio were the most actively traded stocks on the EGX30 index.
Egyptians voted narrowly in favour of a constitution shaped by Islamists but opposed by other groups who fear it will deepen divisions, officials in rival camps said after the first round of a two-stage referendum. Next week’s second round is likely to give another “yes” vote as it includes districts seen as more sympathetic towards Islamists, analysts say, meaning the constitution would be approved.
“Some investors are taking the fact that a constitution voting is happening as a potential for stability on the long-term,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. “But as long as there is a lot of tension with no clarity on stability, Egypt will be a high-risk market. Investors are mostly very short-term due to the political condition.”
Shares in National Societe Generale Bank fell 3.4 percent in a volatile trading session. Parent company Societe Generale on Wednesday agreed to sell its 77 percent stake to Qatar National Bank. The deal values NSGB at 35.56 pounds per share. QNB has to offer to buy the remaining stock for the same price under Egyptian stock market rules.
In Saudi Arabia, the bourse climbed 0.4 percent to its highest close since November 11. Investors are accumulating shares ahead of year-end earnings, which are expected to be better than the previous quarter’s numbers, analysts say. Petrochemical shares gained, with the index advancing 0.9 percent. Saudi Kayan Petrochemical added 2.9 percent and Rabigh Refining and Petrochemical climbed 2.6 percent.
Elsewhere, Dubai’s bourse slipped to an 11-week closing low as investors find little reason to add risk amid a lack of positive regional catalysts. Emaar Properties and Dubai Investments weighed, falling 1.9 and 1.3 percent respectively. Dubai’s index shed 0.5 percent, trimming year-to-date gains to 16.6 percent.
“There aren’t any regional catalysts until Q4 earnings... but there’s room for valuations to go up further looking into 2013,” said Amer Khan, fund manager at Shuaa Asset Management. “This is especially true for banking names. Many of them are trading at a very significant discount to others in the region.”
Shares in telecoms operator du slipped 0.9 percent, extending losses to 11.9 percent since the government announced new taxes or royalties fees. The operator signed a $100m three-year loan facility with Singapore’s DBS Bank, it said yesterday. Small-caps Gulf Navigation and Ajman Bank rose 3.7 and 6.2 percent respectively, in what traders say was speculative trading. These stocks tend to be favoured by retail investors looking for short-term gains.
Reuters
