Doha: Qatar Exchange index lost 27.36 points or 0.30 percent to 9,036.95 points from the previous closing of 9,064.31 points.
The volume of shares traded fell to 12,456,857 from 13,872,545 on Monday, and the value of shares decreased to QR400,158,536.81 from QR456,838,757.00 on Monday.
Among the top losers were Industries Qatar whose share dropped 0.84 percent to QR164.50, Masraf Al Rayan lost 0.75 percent to QR26.50, Doha Bank fell 0.63 percent to QR47.30 and Vodafone Qatar down 0.74 percent to QR9.42.
The banking and financial sector dropped 0.30 points while the insurance sector up 3.30 points. The industrial sector lost 0.58 points and the services sector fell 0.14 points.
Meanwhile, Saudi Arabia’s bourse rose for a fifth straight session yesterday as renewed buying momentum in bluechips drove the index higher. Other regional markets were mixed.
Saudi Basic Industries Corp (Sabic), the world’s largest chemicals producer, gained 1.6 percent, helping lift the sector’s index by one percent.
Banking and petrochemical shares have underperformed the market for most of 2013 but are now catching up due to attractive valuations, according to analysts. Some concerns however, remain.
“There are some difficulties for the petrochemical sector with commodity prices falling,” said Faisal Al Othman, portfolio manager at Riyadh-based Arab National Bank. “But Saudi companies will maintain their competitive advantage due to government subsidies.”
Brent oil futures fell towards $104 per barrel yesterday on concerns that the US Federal Reserve might scale back its quantitative easing programme, which could damage fragile demand. Prices were as high as $119 a barrel in early February.
The banks shares measure added 0.6 percent.
Developer Dar Al Arkan declined in heavy trade for a second session, losing 0.6 percent. Shares in the firm have been volatile this week on speculation around a dividend payout.
On Monday, the company said it won’t pay a dividend for 2012 as it retains cash to fund business growth — the stock fell 6.3 percent following the announcement.
The kingdom’s benchmark climbed 0.7 percent to a fresh one-year high. The region’s largest equity market is up 8.1 percent in 2013 but lagging its peers.
In the United Arab Emirates, the two main bourses fell for a second day as investors booked profits from an early-year surge.
Dubai’s index dropped 0.9 percent, trimming 2013 gains to 42.9 percent. Large-caps weighed, with Emaar Properties and Emirates NBD down 1.7 and 1.6 percent respectively.
Drake and Scull rose 1 percent after it won a $461m contract in Saudi Arabia. “The rally in the UAE was very fast and it was expected to see a correction,” said Ali Adou, portfolio manager at The National Investor.
“Valuations have been re-rated and are now at par with other regional markets. Going forward, there are a few factors that will add to the positive sentiment.”
Dubai has bid to host Expo 2020, which if successful could trigger further market gains, Adou said. MSCI’s decision on whether to upgrade the UAE and Qatar to emerging market status is another potential catalyst, he added. Index compiler MSCI will announce its verdict in June, having opted against upgrading the two countries from frontier markets status on several occasions previously.
Agencies
