Posted on July 26, 2018

Qatar stocks benchmark index broke the 9,600 mark as the blue-chips helped lift the index by 1.94 percent or 183.04 points to finish at 9618.33. Foreign institutional investors were the net buyers.

QSE was the top gainer within the GCC, mainly driven by banks. The banking major QNB rose2.04 percent to close at QR164.80. “The stock remains within the positive territory. Further attempts to cross over this year high at QR165.00 could still be seen on the coming period, which if broken would lead to a re-test of all-time high at QR179.55,” analysts noted. As QIB and Commercial Bank gained 3.35 percent and 2.05 percent respectively, Masraf Al Rayan was up by 1.91 percent. Doha Bank was down by 0.36 percent. Sector wise, the banking stocks rose the most by 2.09 percent. Industries Qatar (IQ) jumped 2.4 percent and Ooredoo was up by 2.23 percent. Vodafone Qatar was the most active stock with trading 1.3million shares.

The telecom operator announced yesterday its net profit grew by QR180m for the first half of 2018 and recorded a 22 percent increase in its postpaid customers. 1Q2018 was Vodafone Qatar’s first ever profitable quarter, almost 10 years since June 2008 when the company was granted Qatar’s second cellular license. “With its (Vodafone Qatar’s) license extended for another 40 years (50 remaining in total), we expect annual license amortization to drop from QR403m to QR85m ensuring sustained bottom-line profitability going forward”, QNBFS noted in its latest company report. Moreover, with majority control moving to Qatar Foundation (50 percent owner), QNBFS analysts expect traction in the post-paid segment to continue, along with a renewed push into fixed-line services.

Property developers Barwa and Ezdan added 0.69 percent and 0.75 percent, respectively. Barwa yesterday announced it reported QR804m profit for the first half, down from QR912m reported a year ago. The company announced it is finalsing its plans to start the development of several projects including PhaseIII of Barwa Al Baraha project and Phase III of Madinat Al Mawater project.

Analysts at KAMCO Research noted a firm close of QSE benchmark index above 10,165 point would promote the next layer at 10,560 point. On the negative side, the nearby support levels are located at 9,000 point, 8,860 point and 8,730 point but a sharp move down is neglected on the coming period. Medium-term and long-term investors can stay in the market as long as the index is closing above 8,850 point and 9,100 point, respectively.

source: The Peninsula