Doha: Qatar Stock Exchange index dropped 23.37 points, or 0.19 percent, when it closed yesterday at 12,525.88 points from Monday’s position of 12,549.25 points.
The share market capitalisation reached QR 678.835bn yesterday.
The traded value today increased to QR598.195m with a volume 10,923,525 share from 5,707 transactions compared with QR431.88m with a volume of 7,642,708 shares from 4,866 transactions yesterday.
Indices of four sectors declined yesterday. Consumer goods and service dropped the most, down 3.58 percent to 7,297.75 points. Real estate dropped 0.44 percent (2,518.82 points), industries dropped 0.31 percent (4,016.55 points)
Transport index was up 0.41 percnet to 2,442 points, telecom was up 0.20 percent to 1,426 points while banks and financial services index gained slightly by 0.01 percent 3,314.26 points.
Shares of 18 companies closed higher yesterday, 22 dropped while two remained unchanged. Qatar Fuel share plummeted by QR15.60 when it closed the day at QR205.40.
Among the gainers were Qatar Investors Group, up 5.89 percent (QR2.50) to close QR44.95.
Retailer Al Meera’s share spiralled 3.55 percent (QR7.60) to close at QR 221.60 .
Meanwhile, most other regional stock markets stood nearly still yesterday as oil prices seesawed and investors waited for the US Federal Reserve to indicate when it plans to start raising interest rates. Brent crude oil hovered around $59 per barrel during the day, swinging repeatedly between gains and losses and giving no clear direction to equities.
US Federal Reserve Chair Janet Yellen was to deliver the central bank’s semi-annual Monetary Policy Report to the Senate Banking Committee on Tuesday and it remains unclear whether she will reaffirm June as a window for a first rate hike.
Changes in US rates will not only affect risk appetite among global investors, they are expected quickly to influence monetary policy in the Gulf countries, whose currencies are mostly pegged to the dollar.
Analysts expect the impact to be especially visible for Saudi Arabian banks, which are to a large extent funded by demand deposits bearing no interest. A hike in US rates would widen their interest margins and boost profits.
The impact of a rate hike will, however, depend on each bank’s mix of deposits and loans. Al Rajhi Bank and Bank Albilad, which according to data from Kuwait’s Global brokerage and Saudi Arabia’s Saudi Fransi Capital have above-average concentrations of demand deposits, were the top gainers among the kingdom’s banks yesterday, rising 1.2 and 3.2 percent respectively.
They were also among the main supports for the stock index, which edged up 0.7 percent. Saudi Electricity Company jumped 3.2 percent after proposing a 2014 dividend of 0.7 riyal per share. It has paid the same amount for the last 10 years.
Agencies
