DOHA: Qatar stocks extended its new year’s best start yesterday further pushing the benchmark index up 1.40 percent to 8,751.20 points. The market outperformed its regional peers on the back of bluechips.
Yesterday’s rally was driven by remarkable gains in the real estate, mainly powered by Barwa and Ezdan. Barwa advanced 2.89 percent as Ezdan added 2.54 percent. UDC edged up 1.09 percent. The sector was up by 2.41 percent.
Among the banking stocks, Masraf Al Rayan was the topper. The Islamic lender surged 4.3 percent. Banking major QNB added 0.63 percent as Commercial Bank and Doha bank advanced 2.87 percent and 2.74 percent, respectively.
Insurance was the lone sector that ended in red, losing 1.13 percent after Doha Insurance Group dropped 3.3 percent.
Local retail investors were the net buyers ahead of the dividend season. “Qatari companies, which traditionally pay high dividend yields, are due to announce fourth-quarter or annual dividends in the next few weeks, and yields may be boosted this year by the fact that stock prices have been pushed lower by the economic embargo imposed by four Arab states on Qatar”, according to a Reuters report.
“A number of stocks look set to continue the rally during 2018, especially as some now have more than 6 percent dividend yield”, Akber Khan, Senior Director-Asset Management Group, Al Rayan Investment told The Peninsula last week.
Backed by strong oil and optimism on Qatar’s 2018 growth budget, Qatar ended the first week of the new on a strong note. Oil prices marked a new high in the new year, since September 2015, recording $67.62 per barrel on Friday. High sentiments coupled with hopes for a better year will be driving markets’ activities in the coming period, analysts at Al Masah Capital said.
With oil market fundamentals increasingly supportive of elevated oil prices – winter crude demand appears robust, supplies are being trimmed by Opec and crude stockpiles are drawing down investors are appearing increasingly bullish. Globally, net long positions have reached a record. According to analysts, Qatar’s strong third quarter growth was a surprise for investors. “Qatari GDP surprised to the upside in 3Q17, suggesting that the diplomatic dispute had a less severe initial impact on activity than previously feared…. GDP growth rebounded to 1.9 percent year-on-year from 0.3 percent in Q2, despite being the first full quarter of the diplomatic dispute that began in early June,” NBK noted in its latest country report on Qatar.
