Doha bourse breaks key 9,000 level
Doha, May 19, 2013
Qatar's bourse closed above the key 9,000 level after making its largest one-day gain in three weeks, while UAE and Kuwaiti markets also rallied on renewed optimism in equities.
Doha's benchmark climbed 1 percent to finish at 9,009 points, its biggest one-day advance since April 24. The market, up 7.8 percent year-to-date, is beginning to catch up with the strong rallies in the UAE and Kuwait as attractive valuations drew in investors.
Barwa Real Estate is the biggest mover, rising 4.6 percent. Qatar National Bank and Masraf Al Rayan added 1.8 and 2.3 percent respectively.
Doha's market tumbled to a 2013 low in mid-April ahead of a planned listing of sovereign assets under a new firm called Doha Global Investment Co. Investors looking to subscribe in the initial public offering cashed out of existing positions, but delays on a May listing for the firm brought back buying interest.
"It's a corrective move - there are some stocks undervalued after the strong selling pressure due to the IPO news and people are coming back to buy," said Yassir Mckee, wealth manager at Al Rayan Financial Brokerage.
In the UAE, Abu Dhabi developers Aldar Properties and Sorouh Real Estate rallied 14.7 and 15 percent respectively - hitting the maximum limit for daily gains of 15 percent - on market talk they may be awarded a mega government housing project ahead of their planned merger in June, analysts say.
Abu Dhabi's benchmark climbed 1.4 percent to end at 3,564 points, while Dubai's index advanced 2.5 percent to 2,352 points - hitting fresh multi-year highs.
"(There's) no looking back as regional markets, especially the UAE and Kuwaiti markets, seem to be catching a second wind in their momentum buying," investment firm Al Masah Capital said in a note.
Kuwait's measure rose 1.5 percent to finish at 8,021 points - closing above the psychologically-important 8,000 level for the first time since July 2009.
"Bears and short-sellers have no choice but to stay on the sidelines for the time being although once the momentum slows, there may be some interesting entry points," Al Masah Capital's note added. - Reuters
More Finance & Capital Market Stories
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn
- Bahrain banking sector on road to recovery
- GCC banks' outlook stable, says report
- GBSA panel names new chairperson