Qatar stages biggest 1-year rally; Gulf markets up
Dubai, September 12, 2012
Qatar's bourse made its largest one-day gain in 12 months and all other regional markets also rose after Germany's approval of euro zone's new bailout fund lifted investor risk appetite.
Doha's index jumped 1.1 per cent in its largest one-day move since August 2011 and closed at its highest level since May 9.
Heavyweight Industries Qatar rose 3.2 per cent, Qatar Electricity and Water gained 0.8 per cent and Qatar National Bank advanced 1.2 per cent.
"Qatar's stocks have been underperforming this year and with growing global optimism, investors are increasing exposure to names with strong fundamentals," said Ahmed Shehada, head of trading at QNB Financial Services. "Foreign interest is holding up in banks as the market catches up to its regional peers."
Doha's measure is down 2.4 per cent year-to-date, with only exchanges in Bahrain and Oman performing worse in 2012.
Germany's top court lifted global shares to a five-month high, boosted Italian and Spanish bonds and sent the euro to its highest since early May, by finally giving its go-ahead to the euro zone's new crisis-fighting fund.
Elsewhere, Saudi Arabia's index gained 0.3 per cent, up 10.7 per cent up so far in 2012.
Petrochemical and banking stocks led the market with Saudi Basic Industries Corp (Sabic), the world's largest chemicals producer, rising (1.4 per cent).
Gains in oil prices also boosted sentiment. Brent crude rose for a fifth straight session, gaining 40 cents to reach $115.80 a barrel by 1322 GMT.
Oil prices impact petrochemical companies' bottom line and is also seen as a proxy for global economic activity and therefore demand for petrochemical products.
Alinma Bank climbed 0.7 per cent and Samba Financial Group added 0.4 per cent.
In Dubai, property-related stocks led gains. Bellwether Emaar Properties gained 2.1 per cent, mortgage lender Tamweel climbed 4.7 per cent and Deyaar Development added 1.9 per cent.
The emirates index closed 0.9 per cent higher at 1,571 points, but faces resistance at current levels.
"We had an indication a few days ago on Dubai's credit-default swaps - they witnessed increased appetite and the yields have shrunk," said Chahir Hosni, head of Gulf institutional sales at EFG Hermes. "That has helped sentiment and as we head into the year-end, we're seeing a shift and market turnover is rising."
Abu Dhabi's benchmark climbed 0.2 per cent to close at 2,602 points. Banks and developers support with First Gulf Bank and Sorouh Real Estate up 0.5 and 2.5 per cent respectively.-Reuters