Doha: Qatar Exchange index was down 71.17 points or 0.84 percent to 8,377.32 points yesterday from the previous closing of 8,448.49 points. Among the top losers were Qatar Insurance whose share dropped 1.49 percent to QR66, Qatar Electricity and Water lost 1.21 percent to QR130.80, Qatar Navigation fell 2.68 percent to QR61.70 and Vodafone Qatar was down 1.59 percent to QR8.68.
The banking and financial sector dropped 17.33 points, the Insurance sector lost 19.73 points, the industrial sector was down 7.60 points, while the services sector added 5.52 points.
Analysts had been expecting Doha’s market to rally as the year-end nears, with investors positioning for dividend payouts. But banks raising capital may deter the tradition. Doha Bank announced plans in October to increase its share capital by 50 percent in the first quarter of next year, raising about $1.6bn.
Meanwhile, regional markets lost ground as investors reduced risk across the board after Israel bombed Palestinian militant targets in the Gaza Strip for a fifth day.
Egypt’s benchmark, amongst the world’s best performing markets this year, tumbled 3.3 percent to its lowest close since November 5. Egypt’s Palm Hills dropped 5.8 percent after the developer posted a net loss of 83.3m Egyptian pounds in the first nine months of the year. Citadel Capital declined 5.4 percent and Orascom Telecom slipped 3.8 percent.
“The regional picture looks bleak — unless we get some clarity on the regional political tension, as well as economic policy future in US, I don’t think we’ll see much buying momentum,” said Amer Khan, fund manager, Shuaa Asset Management.
UAE markets also fell with Dubai’s index slumping 1 percent to its lowest close since September 30. Dubai’s Drake & Scull dropped 5.1 percent. The contracting firm reported a 93 percent plunge in third-quarter profit, widely missing analysts’ forecasts. Dubai Islamic Bank slipped 1 percent, while builder Arabtec and Dubai Financial Market each fell 2.5 percent.
Shares in Dubai-based Islamic mortgage provider Tamweel dropped 3.9 percent, underperforming the property sector after fire damaged parts of the 34-storey, mixed-use Tamweel Tower in Dubai. Tamweel said it would provide hotel accommodation to residents who needed it. There were no reports of casualties.
“UAE... is not at a point where bargain hunters will return. Bluechips will have to fall before people will buy on valuations,” said Khan. Abu Dhabi’s benchmark shed 0.4 percent, down for a third session since Monday’s 16-month high.
Elsewhere, Saudi Arabia’s bourse fell to a near four-week low as banks extended losses and insurance stocks dipped. “Local investors have been and will be mainly following renewed political escalations in the Middle East as tensions rise and oil soars,” a Riyadh-based trader said.
Banks fell with Samba Financial Group and Alinma Bank closing 2.2 and 1.2 percent lower. The sector’s index lost 0.7 percent, while the petrochemical index shed 0.2 percent. Insurance stocks dominated trade and the sector’s index fell 1.1 percent. The kingdom’s benchmark slipped 0.4 percent to 6,765 points, its lowest close since October 23.
“The index found some resistance at 6,950 points,” said Mohabeldeen Agena, head of technical analysis at Cairo’s Beltone Financial. He said the market will move sideways between 6,700 and 6,950 in coming sessions as bulls absorb the selling pressure from the 7,200-7,500 points range.
QNA/Reuters
