(MENAFN- The Peninsula) Qatari stocks edged up yesterday snapping three straight days' deep sell-off. The benchmark index rebounded to the biggest one-day gain in one month, adding 1.56 percent to close the second quarter (Q2, 2015) at 12,201.02.
Banking stocks were the main support. Banking major QNB surged 4.33 percent and QIB went up 0.84 percent and CBQ was 0.5 percent higher. Barwa, Ooredoo and Ezdan were among other top gainers. Both Barwa and Ooredoo were up 2.32 percent and 1.99 percent, respectively. Ezdan was 0.17percent higher; Ezdan was the top traded stock today with 2.97mn traded shares.
Sector-wise, banking stocks gained 2.20 percent and industrials advanced 1.53 percent. While telecoms edged 1.40 percent up, real estate, insurance and consumer sectors gained 0.78 percent, 0.35 percent and 0.03 percent, respectively. Transportation sector slipped by 0.21 percent.
The bourse's monthly trading data showed the main index gained 152.76 percent , or 1.27 percent during June 2015, compared to the previous month. Trading value declined 46.10 percent and volume fell by 58.35 percent, while transactions decreased by 39.27 percent in June. Market capitalization rose by 0.96 percent at the end of the month to reach QR 648.74bn.
Analysts told The Peninsula that the second quarter earnings of GCC listed companies, including in Qatar, are expected to decline on year-on-year basis, again weighed down by petrochemical sector. Banks will be the only major sector showing single-digit in the second quarter on year-on-year basis.
Analysts at Investment Bank SICO said both Qatar and UAE banks are likely to report healthy net earnings growth on year-on-year basis, driven primarily by lower provisioning charges. However, Qatar would witness net interest margin (NIM) contraction in contrast to stable NIM for UAE banks.
The SICO, which covers Qatar's major banks, noted that QNB's ne interest income and fee income are expected to grow during the second quarter.
"Doha Bank is expected to report, healthy lending book growth in 2Q15. Lower provisioning charges are expected to offset the impact of weaker non-interest income" Robust lending book growth is to boost QIB's financing and fee income", Nishit Lakhotia, Head of Investment Research, SICO said in a research note sent to The Peninsula.
A monthly Reuters survey showed a section of middle east fund managers continue to be bullish on Qatar.
The survey of 15 leading managers, taken over the past 10 days, found 2 Fund Managers expected to increase their equity allocations to Qatar for the next three months. While one said they are likely to decrease their allocations 12 fund managers said they will keep their overall fixed income allocations to Qatar in the next three months "same".
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