By Satish Kanady
DOHA: After edging up 4.89 percent in March, Qatari stocks are losing its upward momentum. The benchmark index lost two straight sessions and edged lower by 0.2 percent yesterday to close at 10,234.36
Ooredo declined 1.1 percent and CBQ was down 0.7 percent. Al Rayan was 0.2 percent lower and Barwa Real Estate ended 0.6 percent lower. Qatar Fuel declined 1 percent and Al Meera fell 1.5 percent. Qatar Electricity & Water closed 0.7 percent lower yesterday.
The market has lost its upward momentum due to the continuous difficulties to surpass the horizontal line at 10,500 point. Bulls are required to show some buying activity above there to alleviate the downside risk and to confirm another leg up towards the resistance area at 10,900 point -11,000 point, analysts said.
“On the counter side, continuous reluctance to inch above 10,500 point could put selling pressure on 10,000 point; while a fall below it would trigger further technical correction downward to 9,750 point and 9,500 point. Both weekly and daily RSI (relative strength index) indicators are currently looking neutral”, commented analysts at KAMCO Research yesterday. RSI is a momentum oscillator that measures the speed and change of price movements.
Medium-term investors can stay in the market with a stop-loss below 10,000 point, while long-term investors can only enter above 10,550 point, they said.
QIB, which closed at QR101.40 yesterday, witnessed a noticeable upward move after posting a low at QR75.10 but could not show additional potential above the resistance line at QR111.50. However, a technical correction downwards took place towards QR91.50, while below it will lead to QR86.00. On the other side, above QR104.00 would most likely re-target QR108.50 and QR111.50.
“Banking major QNB closed at QR140.00. The stock is swinging between a tight range of QR135.00-QR142.00 for the last two months, without any clear direction at the moment. However, an escape out of that zone is needed to indicate the next move”, analysts said. Qatar Gas Transport Company or QGTS closed at QR23.29. “A fall below QR23.00 would be the turning point to trigger QR21.85 and may be QR20.60. However, managing to jump over QR24.10 will promote QR25.90.”
Investors in most Gulf stock markets shrugged off further losses in oil prices on Monday, while foreign buyers helped to lift Egypt’s bourse, Reuters reported. The Dubai index jumped 2.3 percent to 3,379 points, nearing technical resistance on the March peaks of 3,397-3,421 points as momentum started to build in the latter half of the session, with volume hitting a three-week high.
Riyadh’s index recouped most of the previous day’s drop and rose 1.4 percent, as local retail investors bought back speculative stocks that they had dumped on Sunday. The insurance sub index jumped 2.3 percent after tumbling 3.5 percent on the previous day. The Peninsula
