By Satish Kanady
DOHA: Qatar stocks drifted lower yesterday, weighed down by global cues and profit taking ahead of the Eid Al Adha holidays. The benchmark index plunged 324.76 points, or 2.87 percent, to finish at 10,989.79. The market was 3.64 percent up on month on month.
Among the sector indexes, Insurance and Banking stocks were the worst hit. Banking sector fell 3.10 percent with commercial Bank declining the most by 5.41 percent. Doha Bank shed 4.09 percent. Banking major QNB, which announced yesterday it has authorised several banks to work together as key managers to issue US dollar bonds, shed 3.83 percent. Insurance sector was hammered by 3.74 percent
Analysts said on Tuesday that Qatar Exchange’s (QE) main index could test 11,600 and 11,700 if it sustains above 11,400. On the downside, it could find support near 11,150 and 11,000. The short-term outlook was the index could test 11,600 and 11,700 if it sustains above 11,400 on the upside. On the downside, it could find support near 11,150 and 11,000, GIH analysts said.
Among the real estate stocks, UDC, Barwa and Ezdan lost 5.02 percent, 2.41 percent and 2.64 percent, respectively. On Barwa, market experts said they are bullish on the stock from a short-term perspective. “We believe the stock could advance in the near term, and reach our price targets of QR38.50 and QR39.50. Traders could consider buying above QR37.50 and maintain a stop loss at QR36.70,” they said.
The Qatar index slipped the 11,000 mark on a day Reuters’ fund managers poll found the investors are wary of regional markets. “Sentiment has on balance turned negative towards Qatar, where 43 percent now expect to reduce equities allocations and 21 percent expect to increase them — the most bearish balance since April. Last month, 14 percent anticipated a reduction and 36 percent an increase,” Reuters said.
The poll found 36 percent of funds expect to increase their allocation to Middle East equities and 14 percent to reduce them, a lower net positive than last month’s rates of 43 percent and 14 percent respectively.
Qatar’s stock market has been supported in recent weeks by anticipation of index compiler FTSE upgrading the bourse to emerging market status in mid-September. But several fund managers think many Qatari shares are now trading at or above fair value, leaving the market vulnerable to a correction.
The Peninsula
