Posted on April 19, 2014
Qatar bourse index breached its eight-year peak level in intra-day trade yesterday. Qatari retail investors sent the bourse to a fresh peak, as main index jumped 97.12 points, or 0.78 percent, to close at 12,550.98 points. The intra-day trade saw the index surging to 12,679 points, the highest level since September 2005, before retreating to 12,550.98 levels. The Qatar Exchange’s index hit historical high on September 20, 2005 after it closed at 12892.76. Driven by strong sentiments, the market seems to be inching towards this target, analysts said.
“Qatari individual investors, who were the net sellers until recently, have transformed to net buyers for the last few weeks. A combination of other factors like expectations on the bourse upgrade, strong first quarter results and Ezdan’s announcement on its new ventures have lifted the spirits of both foreign and local investors”, market analyst Bashir Yousef Al Kahloud told The Peninsula. The first set of company results announced in the past weeks saw an average 12 percent increase in their earnings. The market is expecting at least 20 companies to announce their first quarter results in the next week.
It seems the impressive results have created a ‘feel good factor’ among investors, he said. Islamic lenders Rayan, International Islamic and QIB continued to surge and contributed most to the benchmark index. Rayan soared 5.83 percent to close at QR47.20. International Islamic gained QR3.05 to QR84.50. QIB extended the rally after reporting upbeat earning on Wednesday, gaining QR2.69 percent to QR83.90.

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The telecoms, along with the banks and financial services, continued the rally yesterday, fuelled in part by upbeat first quarter results. Telecoms index surged 1.60 percent with Vodafone gaining 5.65 percent and Ooredoo adding 0.68 percent. Meanwhile, a number of formerly high-flying stocks in the industrials and transportation sectors continued to remain in the bear territory.
The index gained 153.77 points, or 1.24 percent, in the past week. Market cap rose by 2.73 percent in the last week to QR728bn compared to the previous week’s QR709bn. Banks and financial services led trading value, accounting for 29.97 percent of the total. The real estate sector led trading volume with 30.39 percent. Trading value decreased by 13,66 percent to reach QR5.44bn compared to the previous week’s QR6.30bn. Trading volume decreased by 4.52 percent to reach 168 millions shares. The number of transactions fell by 5.39 percent.
The Mazaya Qatar led trading value during the week, accounting for 7.77 percent, followed by UDC and Rayan. The telecoms and insurance sector indices outperformed in the last week, with the telecoms surging the most by 3.66 percent. Insurance sector edged 3.03 percent up with the General Insurance jumping 15.85 percent against the previous week.