Qatar stock market continued to enjoy the country’s expansionary budget announcement for the third consecutive session, extending the rally to sixth straight day, yesterday. In the buying spree, Qatar Stock Exchange (QSE) benchmark index surged 3.79 percent or 310.89 points, its biggest daily gain in almost one year.
“Foreigners have scooped up large caps while local investors have focused on smaller names. It seems the overhang of uncertainty for the market is receding and with the announcement of the growth-focused 2018 budget, investors are pricing Qatar coming back to strongly after the set back of the blockade”, Akber Khan, Senior Director, Asset Management Group, Al Rayan Asset Management, told The Peninsula.
The 300 point rally marks the sixth consecutive gain and a 9 percent cumulative rally, he added.
Real estate sector continued its positive trend by gaining 7.10 percent. Ezdan popped up to the top by jumping 7.89 percent. Barwa gained 5.60 percent as UDC advanced 5.22 percent.
Yesterday, Barwa announced it had signed a leasing contract with the Ministry of Municipality and Environment for the rental of two plots of land, with a total area of 1,179,114 square meters on Salwa Road for a lease term of 27 years. The land will be developed into a labour city, in line with the Qatar National Vision 2030. The city will aim to provide housing for workers of different nationalities and cultures, especially those living in slums.
The banking sector rose 3.51 percent, as QNB emerged as the hot stock gaining 4.97 percent. QNB’s Turkish unit QNB Finansbank AS yesterday announced it aims to grow loans and deposits by about 20 percent in 2018.Temel Guzeloglu, Chief Executive Officer of the bank said the industry average expected for next year is 15 percent.
Among other banking stocks Doha Bank jumped 4.36 percent; Masraf Al Rayan gained 3.39 percent, and QIB and International Islamic 1.71 percent and 1.24 percent, added respectively.
Ooredoo, which surged 6.55 percent, lifted telecom sector by 6.06 percent as Insurance sector soared 8.27 percent.
The entire 43 companies advanced in yesterday’s trading. The robust market breadth could pay the way to fresh highs, according to market watchers.
Oil prices staying above $63 per barrel mark is also supporting the buying interest across the region. The month of December is turning out to be a good end to the year 2017, analysts at Al Masah Capital said.
“In the past week, four out of the eight markets in the region ended in green. Qatar came in as the best performing index with gains of +5.6 percent. The continuing outage of a North Sea pipeline coupled with the extension in Opec production volumes supported oil prices, with crude oil hovering around the $63 per barrel and the WTI ending the week at $57.30 per barrel. For the remaining two weeks in 2017, markets are expected to trade range bound with thin volumes as traders and investors start to put 2017 behind them and begin looking towards the new year,” they said.
