DOHA: Qatar stocks surged 5.5 percent encouraging investors to buy stocks with beaten-down valuations yesterday, before settling at 8,987 points.
Masraf Al Rayan jumped 9.7 percent and was the best-performing stock. Qatar’s second-largest bank by market value reported a 3 percent fall in fourth-quarter net profit to QR559m ($153.5m), compared to analysts’ forecast of QR553m.
Qatar Gas Transport, which was added to MSCI’s emerging markets index in November, surged 7.9 percent as both foreign and local investors bought back, said one trader.
Major Middle East bourses climbed more than 2 percent yesterday after global oil and equity markets stabilised, encouraging investors to buy stocks with beaten-down valuations.
The Saudi index, which had tumbled 20 percent since the end of last year, jumped 4.0 percent to 5,746 points. One of the top performers was Southern Province Cement, a mid-cap materials company, which rocketed 9.8 percent after it reported a 21.6 percent increase in fourth-quarter net profit.
Other mid-caps in various sectors also carried the bourse higher. Bupa Arabia was up 8.7 percent after the insurer reported a 69 percent jump in quarterly profit.
Nevertheless, fund managers said that with oil prices still vulnerable to further falls and global bourses shaky, it was too early to call a bottom for Gulf markets.
“The rebound in small and mid-cap stocks, or so-called speculative stocks, does not categorise today’s performance as a rally,” said Natheer al Mahdi, head of Saudi mutual funds at Riyad Capital.
Dubai’s stock index rose 3.3 percent as builder Arabtec and Amlak Finance each rose more than 10.0 percent. Abu Dhabi’s bourse climbed 2.5 percent as investors bought blue-chip stocks.
First Gulf Bank and Abu Dhabi Commercial Bank rose 5.3 and 2.4 percent respectively, in their second day of gains.
Reuters
