Real estate stocks help lift QSE to five-month high
(12/6/2017 6:09:00 AM)
Qatar stock market extended its rally for the second straight session yesterday, lifting the benchmark index by 2.24 percent or 173.83 points to finish at 7,930.38. Real estate stocks surged 6.8 percent.
Ezdan broke the circuit and rose to the 10 percent daily limit. As Mazaya Qatar gained 7.34 percent, Barwa and UDC advanced 2.43 and 1.26 percent, respectively.
Leading real estate developer, The SAK Holding, yesterday predicted a strong turnaround in Qatar’s property market. SAK projected 8 percent growth in long-term. The SAK was also bullish on Qatar’s public spending in the run up to FIFA 2022.
The third week of November witnessed a record jump in terms of value of real estate transactions.
The QSE’s trading volume almost doubled yesterday, compared to the previous trading session. The benchmark index is, however, 24.1 percent down on year-to-date.
According to analysts, yesterday’s jump in the market was the biggest in nearly five months. The surge was mainly driven on the hopes that the ongoing diplomatic standoff will be resolved in the two-day GCC summit starting in Kuwait today. Most other Gulf markets were firm, according to Reuters.
Qatar Insurance gained 4.7 percent. Among the banks, Qatar International Islamic Bank rose 4.01 percent and QNB gained 2.51 percent. Another big gainer of the day was drilling rig provider Gulf International Services, up 9.7 percent.
Market watchers said that Qatar stock market is appearing to be losing its downside momentum and they still believe that the support level at 8,000 point should contain any downward attempt and force the index upward.
They warned that the below 8,000 point would bring back to focus the low of year 2011 at around 7,500 point.
“Crude oil is still maintaining its position above the $60 per barrel mark, ending November up 3.1 percent over the last month. The active regional IPO pipeline, coupled with high oil prices and any positive news in the geopolitical scene will act as a catalyst to the subdued activity that the regional markets are witnessing recently”, analysts at Al Masah Capital said in a note sent to The Peninsula, yesterday.