Sunday, 22 October 2017 12:21 GMT
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Qatar- Budget projections push QE index up

(MENAFN - The Peninsula) Qatar stocks put up a good show yesterday after the strong annual budget projections. The benchmark index jumped 2.29 percent, a four-week high to cross the 11,900-mark after Qatar projected a record high budget allocations for the 2014-15 fiscal on Sunday



The market was primarily lifted by the huge buying interests of institutional investors. The entire sector indices ended in green, with the industrials and banking sector surging the most. The industrials soared by 2.44 percent with major contribution from The Investors. The banks and financial sector edged up 2.20 percent with International Islamic adding 4.17 percent. The banking major QNB advanced 2.88 percent



The Gulf International Services that announced the acquisition of Japan Drilling Company's 30 percent shareholding in Gulf Drilling International on Monday, jumped 9.94 percent. National Cement Company that signed a letter of intent with a French company to launch its Plant 5 last week rose by 0.58 percent



Among other top gainers were Gulf Warehousing, Islamic Holding, Ooredoo, Vodafone, Rayan and Electricity and Water



The market cap rose to QR661bn from the previous session's QR650bn. Total traded value jumped to QR1.04bn from QR794m. Total traded volume increased to 23 million shares from Monday's 18 million shares



"The budget figures have nothing to do directly with today's market performance. It seems the market was over reacting. The 16 percent increase in the government spending might have lifted the sentiments. But we cannot necessarily link the market reaction directly to the budget announcement", a local market analyst told The Peninsula



The QE index has put up a better show since the beginning of the year, compared to the more sedate gains that were seen during 2013, as the index has added 14.27 percent for the year, with adding 7.19 percent during February alone.



In March, the index lost 1.12 percent. Market capitalisation fell by 4.84 percent to reach QR 650bn from the previous month's QR683bn. The month saw the industrials sector leading trading volume with 29.48 percent of the total, followed by the real estate sector



The past week saw trading going down to QR3.16bn. The total trading volume fell by 3.5 percent to QR316m and the daily average dropped to QR632.4m compared with QR655.6m in the previous week. Total trading on the shares of the top 6 companies amounted to about QR1.83bn representing 57.9 percent of the total trading where trading on the shares of Mesaieed amounted to QR649.3mn, analysts at the Group Securities noted


Qatar- Budget projections push QE index up