By Satish Kanady
DOHA: Qatari stocks extended gains for the fourth straight session yesterday as the benchmark index jumped 2.29 percent or 232.08 points to finish at 10,368.65 on higher oil prices. Qatar raced ahead of other GCC stocks yesterday as they lost their Sunday steam.
Oil sensitive stocks and real estates were particularly strong. Gulf International Services surged 8.92 percent. Petrochemical producers MPHC and Industries Qatar rose 2.51 and 2.23 percent, respectively. Real estate stock Barwa rose 4.19 percent, while Ezdan gained 3.34 percent. Vodafone Qatar was up 7.9 percent to QR12.15.
Brent crude, the key benchmark for the Middle East’s oil exporters, hit a high for the year above $40 a barrel yesterday after data showed a smaller-than-expected build in US crude stockpiles. Brent was last up $1.87 at $40.59, while US crude rose $1.58 to $37.50. Oil cartel Opec expects that the price will anchor at $50.
Vodafone Qatar was the most active in terms of volume with 3 million traded shares, while Gulf International led the value with QR 103m. “The Qatari markets need more liquidity in the upcoming period to be able to break above the levels of 10,400 points and 10,500 points,” Mubasher reported quoting analysts.
After closing February on a strong note, the first week of March saw buyers doubling down and momentum continuing this current upswing across the GCC market, analysts at Al Masah Capital, a leading Dubai-based alternative asset management and advisory firm, told The Peninsula. Supported by favourable triggers such as oil prices heading towards $40 and global markets rallying, regional markets had enough ammunition to show that the positive movement witnessed in February may not be a onetime fluke.
The regional average weekly gain of 2 percent was led by Dubai and Abu Dhabi both each rising 4 percent while Saudi supplanted Qatar as the recent sidekick to UAE and also went up 4 percent. Qatar wasn’t far behind with a 3 percent rise while Egypt treaded water. Given that this is the first concerted effort by buyers to re-establish their grip on the market after a very long time, market observers are willing to see how long they can sustain it.
“For now, the greater picture has not changed, oil prices remain low, regional governments continue to cope with reduced earnings and the global economic picture remains uncertain. But despite these circumstances, buyers are becoming more optimistic, demonstrating a willingness to stand and fight”, analysts said.The Peninsula
