Qatar stocks plunge to multi year lows on panic

(MENAFN- The Peninsula)

By Satish Kanady

DOHA: Qatari stocks plunged to a multi-year lows yesterday triggered by oil-induced sell off. All seven sector indexes tumbled as panic gripped investors. The benchmark index recorded its lowest level since April 2013 as it closed yesterday at 8527.75 points after slumping 7.16 percent or 657.37 points.

The stocks dropped sharply just minutes into trading pushed down on global cues. The drops add to a series of recent declines that have caused broad concern about the year ahead. Among the sector indexes real estate was the worst hit.

The four stocks in the sector collectively tumbled 9.94 percent with UDC and Ezdan shedding 10 percent each. Telecoms sector was battered by 9.32 percent.

“Selling was pronounced throughout the last few weeks and the market is poised to witness further weaknesses on the medium-term as no signs of reversal has been spotted on the weekly chart along with its continuous print of lower-lows. The next area of support comes at 8300 point-8000 point knowing that a close below 8000 point would trigger the next horizontal line at 7500 point” analysts at KAMCO Research said.

On the counter side they added a noticeable bullish move is not expected to take place but some short-term momentum could be seen emerging due to the oversold status of both weekly and daily RSI (relative strength index) indicators. The nearby lines come at 9000 point 9400 and 9600 point.

“Medium-term and long-term investors can enter the market at levels higher than 10000 point and 11000 point respectively KAMCO advised.

Qatar Exchange (QE) yesterday announced it will disclose the shareholders who have purchased net intra-day 1 percent or more of a listed company’s capital. This is according to the instruction by the market regulatory body QFMA the bourse said.

The energy sensitive stocks MPHC and GIS shed 9.97 percent and 8.55 percent respectively. Powerhouse stock Industries Qatar (IQ) lost 6.88 percent. Among the banking stock Masraf Al Rayan and QIB lost the most. Yesterday’s market crash was followed by a series of bad news for the regional market. The UN nuclear watchdog’s announced it is lifting of sanctions on Iran.

On the utility giant QEWC which closed at QR180.10 the technical analysts noted the stock is exposed to further technical correction downwards given its move below all moving averages and bearish RSI indicators.

Oil prices fell below $30 for the third time last week as traders prepared for the prospect of Iranian oil flooding global markets.

Middle East stock markets plunged to new lows yesterday with Saudi Arabia tumbling more than 5 percent as a fresh slide of oil prices and declines in global equities triggered panic selling.

Many institutional investors were taken aback by the extent of yesterday’s losses in the Gulf the almost indiscriminate tone of the selling and the lack of buying support in the market even when valuations reached low levels Reuters reported.

Sentiment was hit hard by Brent oil’s 6 percent drop yesterday to settle below $29 a barrel bringing its decline for the week to 13 percent. Saturday’s lifting of sanctions on Iran could in the short term push oil down further as additional Iranian supply arrives in the global market.

Gulf Arab governments have been putting in place austerity policies to stabilise government finances in an era of cheap oil. But the latest drop of oil prices if sustained could force another more severe round of austerity.

The Saudi stock index tumbled 5.4 percent its largest drop since last August to 5520 points its lowest close since March 2011.

Dubai index slid 4.6 percent to 2685 points its lowest level since September 2013 bringing this year’s losses to 15 percent. Abu Dhabi’s index sank 4.2 percent led by real estate firms and banks; blue chip Aldar Properties lost 7.0 percent Reuters said.

The Peninsula