Favourable regional cues coupled with higher global markets helped Qatar stock market benchmark index break the psychological 10,000 level yesterday. The index ended 241.98 points or 2.47 percent higher, its highest single-day gain in three months, to finish at 10,029.75. Foreign investors were the net buyers. The market is 2.6 percent down year-to-date.
Industrial and banking sectors jumped 2.47 percent and 2.42 percent, respectively. Insurance index was up by 3.10 percent. Telecom sector advanced 2.19 percent.
Among the banking stocks, Doha Bank surged 4.82 percent as banking major QNB and QIB gained 2.99 percent and 1.90 percent, respectively. Bellwether Industries Qatar advanced 3.41 percent and QEWS jumped 4.3 percent. Energy sensitive GISS added 1.94 percent as MPHC rose 2.26 percent.
GISS recently announced that its 100 percent-owned subsidiary GDI has formed a 50/50 JV with SeaDrill Ltd. known as GulfDrill. The firm disclosed the value of the initial well-based contracts at QR2.39bn. The contracts include single individual well-based options that could potentially add another QR2.55bn. Analysts felt this announcement will add further validation to our bullish thesis on GISS. GulfDrill (the JV) is formed to service the Qatar Petroleum North Field Expansion drilling program and support the execution of the drilling contracts which have been awarded to GDI.
Earlier, analysts at KAMCO Research noted that the market above 10,400 point would increase the chances of re-testing the strong resistance level at 10,810 point (the high of this year) and maybe 11,100 point. Medium-term investors can re-enter the market at levels above 10,400 point, they said.
“Mena dedicated money is being rotated out of Saudi into UAE and we suspect also in Qatar since it has lagged in year to date terms,” Reuters quoted Vrajesh Bhandari, senior portfolio manager at Al Mal Capital Bhandari as saying. He expected these trends to continue for the next one or two weeks and investors would then need to be more selective in their approach.
Global provider of benchmarks FTSe Russel, in its 2019 semi-annual review added Qatar Fuel to its large cap index. Barwa Real Estate was deleted from large cap and added to midcap. In the index rebalancing act, Salam International and Qatar Oman Investment were added to micro cap. Al Meera was deleted from mid cap and added to small cap. Qatar Navigation was deleted from mid cap and Islamic Holding Group was deleted from micro cap. The changes will be effective on September 19, 2019.
Wall Street’s main indexes rose for the second straight session yesterday, supported by broad-based gains as investors pinned their hopes on a resolution to the protracted US-China trade dispute despite mixed signals from both sides.
Source from: The Peninsula