Banking stocks boosted Qatar’s equities market yesterday, with some share prices approaching levels last reached before the country’s diplomatic crisis erupted in early June.
The Qatar index advanced by 1.2 percent to 9,502 points, its highest finish since June 5 diplomatic crisis. Yesterday’s gain left the index only 4.3 percent below its pre-crisis close. It has been as much as 13 percent lower early this month, Reuters reported.
Qatar National Bank(QNB), the largest lender, jumped by 4.4 percent to 143 riyals. It closed at QR145.30 on June 4. Second-quarter earnings announced by QNB and other Qatari banks in recent days have suggested that the economic impact of the sanctions on Qatari lenders so far has been minor in terms of the drain on their deposits and damage to bottom lines.
Qatar Islamic Bank, which analysts say is one of the most exposed to withdrawals because of the diplomatic crisis, rose 1.4 percent. Late on Tuesday it reported a 10 percent rise in first-half net profit and a 2 percent increase in deposits in the six months to June 30. QIIB added 1.4 percent. Commercial Bank of Qatar, however, edged down 0.3 percent.
