DOHA: Qatar Exchange (QE) index dropped 32.57 points or 0.39 percent to 8,390.32 points yesterday. QE sector indices traded in the negative zone. Only insurance and telecommunication sectors turned green, adding less than one percent.
Real estate sector performed worst, paring 0.72 percent. Banking financial services, transportation and consumer goods & service sectors followed it with close to 0.6 percent each.
The volume of shares traded fell to 3,347,326 from 3,477,133 on Sunday, and the value of shares decreased to QR118m from QR123.6m. Among the top losers were Medicare, Masraf Al Rayan and Qatar National Bank. QNB’s share dropped 0.99 percent to QR130.00.
Meanwhile, Egypt’s bourse resumed rising yesterday after an early-session dip brought back buying interest among foreign investors, while trading in the Gulf was lacklustre and volumes thin because of the year-end lull.
Cairo’s index gained 0.2 percent to 5,373 points, and has risen in nine of the last 12 sessions.
The market fell on Sunday after voters approved a controversial new constitution for the country. But plenty of investors remain bullish about the medium term, even though the constitution may cause further political turmoil, and although the political instability has led Cairo to delay its request for a $4.8bn loan from the International Monetary Fund.
“Technically, the market surprised by its resilience and immunity to disappointment on milestones that were supposed to be a catalyst — like the IMF loan,” said Mohamed Radwan, director of international sales at Pharos Securities.
The market plunged more than seven percent in late November after President Mohamed Mursi expanded his powers and pushed through the drafting of the constitution, but the index is now back at pre-crisis levels.
“The market rebounded from the aggressive sell-off and swallowed the bearish news. The index faces resistance at 5,500 in the short term and at 7,000 points in the medium term,” Radwan said.
The market was open and showed little reaction when Standard & Poors’ cut Egypt’s long-term credit rating to ‘B-‘ on Monday and said another cut was possible if deepening political turbulence undermined efforts to prop up the economy and public finances.
Orascom Construction Industries and Telecom Egypt each gained 0.7 percent.
In Saudi Arabia, the index declined 0.1 percent to finish at 6,881 points, down for a second session since Saturday’s six-week high.
Volatility was low as undecided investors awaited cues from fourth-quarter earnings and the 2013 state budget, from which investors are hoping for a boost in government spending.
“The market action is subdued today mainly due to uncertainty - people are waiting for the fiscal budget which is expected in a few days,” said Mohammad Omran, a Riyadh-based independent financial analyst and a member of the think tank Saudi Economic Association.
“If petrochemical companies’ earnings surprise on the upside, it will boost the market and the index could break the 7,000 level.”
Large-caps declined on Monday with the petrochemicals index slipping 0.3 percent and banking shares down 0.2 percent.
In the UAE, Dubai’s index advanced 0.09 percent. Retail investors dominated with institutionals away, waiting for next year to start.
The Peninsula/Reuters
