Posted on June 10, 2017
Qatar's stock market rebounded on Thursday from a steep slide caused by its diplomatic rift with neighbouring states, while a plunge in oil prices weighed on Saudi Arabia's bourse. The Qatar Stock Exchange (QSE) main index, which had lost 9.7 percent over three days, bounced 3 percent, or 272.67 points, to close at 9,237.68 points at close of trade for the day.
Turnover of the Qatari bourse amounted to QR516.93 million after 15.59 million shares were traded against QR493.43 million and 20.92 million shares traded on Wednesday. Vodafone Qatar was the most actively traded in terms of volume with 2.61 million shares exchanged, while Qatar National Bank (QNB) logged the highest turnover of QR58.81 million. All seven sector indices on the bourse closed in the positive territory. The All Share Real Estate Index, which rose 5.31 percent, was the best performer among all the indices. United Development Company (UDC) and Barwa Real Estate, the two major constituents of the realty index, rose 6.19 percent and 5.99 percent respectively. Ezdan also saw its stock price gaining 4.93 percent.
The All Share Transport Index and the All Share Consumer Goods and Services Index, which gained 5.28 percent and 4.55 percent respectively, also played vital roles in lifting the market. Out of the 44 stocks listed on the Qatari bourse, only 41 traded on Thursday. Out of that, 35 stocks gained and two declined. There was no change in the share prices of two stocks. Fund managers noted that many Qatari blue chips had fallen to relatively attractive valuations. Investors are also hoping that mediation efforts over the weekend will help bring a resolution for the dispute.
Some of the stocks most heavily beaten down early this week on fears that Qatar's foreign trade would suffer rebounded most strongly, with Gulf Warehousing shooting up 9.1 percent. Qatar's main index was up 2.5 percent after an hour of trade with all 17 companies that have a market capitalisation of over $1 billion rebounding. Qatari Investors Group jumped 10 percent after saying it had won two lawsuits filed against it by Sanad Al Doha Real Estate Investment Company and Ezdan Holding. The suits had sought to oust the group's board of directors, it said.
Saudi Arabia's index fell back 1.2 percent after the Brent oil price tumbled 4 percent overnight. Among major losers, travel firm Al Tayyar sank 3.9 percent. Atheeb Telecommunications rose 3.9 percent after saying it had obtained new frequencies for its operations at a cost of 2.07 billion riyals ($552 million). Dubai's index fell 0.2 percent as Emaar Properties, which had surged 8.6 percent on Wednesday after saying it planned an initial public offering of up to 30 percent of its United Arab Emirates real estate development business, slipped back 0.3 percent.
Ubhar Capital estimated Emaar shareholders would receive a dividend of 0.92 dirham per share as a result of the IPO, assuming the full IPO proceeds were paid out. That compares with a 2016 dividend from Emaar Properties of 0.15 dirham. Builder Drake & Scull, which has been rebounding for a couple of weeks from a 15-month low, climbed 4.3 percent in its heaviest trade since mid-February.
In Abu Dhabi, the index rose 0.5 percent as Dana Gas continued to outperform, adding 3.9 percent. It leaped 10.9 percent on Wednesday after saying it had received $40 million from the Egyptian government towards its outstanding receivables.
source: Qatar Tribune