Posted on September 11, 2014
Qatar Exchange’s (QE) benchmark kept its rally alive today, breaking through the 14000, in coincidence with FIFA’s final decision on 2022 World Cup, Mubasher Exclusive said. The index rose 0.56% or 77.7 points to close at 14046.61 pts compared with 13968.91 pts yesterday.
Tuesday’s turnover increased to QAR 797.3 million, from QAR 781.88 million yesterday. Traded volume also rose from 17.8 million shares to 18.42 million shares. The index got a boost from the strong buying transactions which took place on several stocks, including Gulf International Services which was up 4.7%, Investors (3.6%) and QNB (3.4%). Capital Market technical analysis consultant Nawwaf Al 'Oun told Mubasher in an exclusive that some leading and mid-cap stocks witnessed remarkable buying transactions boosted by FIFA’s final decision on 2022 World Cup.
FIFA CEO Sepp Blatter said the World Cup will take place in Qatar for the first time, and the FIFA is ‘completely committed’ to this decision. Blatter also said FIFA will study switching the World Cup to December 2022 in the face of concerns over the health of players and spectators in temperatures that regularly reach 45C in June. Al 'Oun said this positive decision will boost investor sentiment especially the foreigners. The real estate sector jumped 2.04%, helped by Barwa which added 1.1% and United Development which rose 1.7%.
The Industrials also increased 0.95%, with Gulf International advancing 4.7% and Investors (3.6%). Transport closed 0.95% higher, boosted by Qatar Navigation and Gulf Warehousing which gained 1.6% and 1.18%, respectively. Insurance rose 0.91%, with Doha Insurance and General Insurance adding 2.9% and 2.6%, respectively. Ibrahim Al-Failakawi, capital market technical analysis consultant, said the ongoing spending on infrastructure amid preparation for 2022 World Cup will help lure fresh liquidity which is considered the main driver of the economy and trading.
The analyst expected the index to maintain its bullish performance and will try to break a record level. If the index consolidates above 14000 level, it will target 14300, then 14500 pts. However, it fails to hold position above this level, it will head towards 13820 amid profit-taking, Al-Failakawi said.