Doha: Qatar stock market’s benchmark index jumped past 8,900-mark, the index’s fastest run to a fresh gain of 224.62 points in the post-blockade era. Powered by banks, real estate, and insurance, the index jumped 2.57 percent to outperform its regional peers for the second straight session.
Projections for an accelerated economic growth, improving sentiments and chase for dividends ahead of the earnings season helped powered the market rally.
“We shouldn’t be surprised that market continues to move higher. Because fundamentals are positive and investor optimism is actually improving,” a local fund manager told The Peninsula.
Aamal, one of the region’s fastest growing diversified companies, made two major announcements yesterday. It announced that via its subsidiary Senyar Industries Qatar Holding it would develop three major new industrial projects. In a separate announcement, Aamal said its subsidiary Ebn Sina Medical has entered into a deal to import pharmaceutical products from Turkey. Aamal’s shares fell 2.38 percent.
The benchmark index has now rebounded to within 10 percent of its pre-blockade level, having plunged 22 percent at one stage. Qatari companies, which historically pay high dividend yields, are due to announce fourth-quarter or annual dividends in the next few weeks, and yields could be boosted by the drop in stock prices after the economic embargo imposed by the Arab quartet, Reuters reported.
The trading volume almost doubled from the previous session as Commercial Bank gained 3.22 percent and the Islamic lender Masraf Al Rayan added 3.20 percent. Banking major advanced 2.43 percent as QIB rose 2.54 percent.
The shares of Industries Qatar, which is heavily weighted by the benchmark index, surged 3.47 percent. Energy-sensitive MPHC and GISS, rose 2.20 percent and 2.22 percent, respectively. Property developers UDC, Barwa and Ezdan extended their rally. UDC surged 3.38 percent as Ezdan jumped 3.22 percent.
Sector-wise, the Insurance outperformed the rest, by adding 5.15 percent, followed by transportation (3.01 percent), industrials (2.59 percent), real estate (2.56 percent) banks (2.49 percent) and telecoms (1.77 percent). Qatar Navigation (4.30 percent) and Nakilat (4.01 percent) lifted transportation sector.
According to ‘Mubasher’, the QSE’s liquidity surged 102.1 percent to QR411.39m yesterday, for the first time in 2018, while the trading volume surged 91 percent to 15.2million, compared with the previous trading session’s 7.96 million. (Source)