DOHA: QP’s announcement to raise the ceilings for foreign ownership in the energy firms and its listed subsidiaries ignited the country’s stock market yesterday. Industrial stocks dominated the market as the companies that QP had announced to increase their foreign ownership limit (FOL) surged.
The QSE benchmark index finished up 1.1 percent or 95.05 percent to close at 8,669.04 on the first trading day of the second quarter, outperforming the regional market.
Picking up on the QP’s announcement, MPHC soared 9.94 percent as Qatar Fuel jumped 7.07 percent. Gulf International and Qatar Electricity rose 6.26 percent and 1.17 percent, respectively.
The index rose as much as 1.30 percent earlier in the session before paring gains in the final hours of trading. Market data shows MPHC and Qatar Fuel are up by 26.69 percent and 14.93 percent year-to-date, respectively.
According to QNBFS analysts, the expected resistance level of the QSE index is 9,000. On the MPHC, the analysts had sent a buy recommendation back on March 21. “We believe that a successful breakout above the QR15.00 would most likely move the name higher inside a bullish channel in medium-long term”, QNBFS noted in its daily technical analysis.
According to Al Rayan Investment’s‘market snapshot’ released yesterday, QEWC was one of the top gainers among GCC equities during the month of March.
With more and more companies deciding to raise the foreign ownership limits, the market is in currently in a structurally different environment. The muteness seen since the blockade will end soon.
The backlash the market witnessed after the blockade is fast fading, a top market strategist told The Peninsula.
Sector-wise, consumer goods and services rose the most by 3.36 percent. Industrials advanced 2.43 percent and Banks and Financial Services edged up 1.15 percent, as Real Estate gained 1.31 percent.
The biggest rises in the banking sector were seen in QNB (1.62 percent), Commercial Bank (1.30 percent) and QIB (1.23 percent).
Market experts believe that the increasing non-Qataris share ownership in the Qatari companies is a step in the right track since it will improve their investments in the QSE in general and in the energy sector in particular. More companies are expected to take the same decision over the coming period.
