Qatar index tumbles nearly 3% as FTSE Russell rally overdone

Dubai:

Qatar index led the regional losses, snapping a three day gaining streak as investors thought the recent rally was overdone.

The Qatar exchange index closed 2.87 per cent lower at 10,989.79, after hitting a low of 10,989.79, a level last seen in mid-August. The Qatar index was included in the emerging market index of FTSE Russell along with 20 different stocks, a move that analysts expect would result in passive flow of $400 million (Dh1.47 billion) in the first phase.

“Qatar index went up because of FTSE Russell, and a lot of investors are saying that’s enough and so they are taking profits,” said Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities.

Qatar index, which has gained 5 per cent since the start of the year, has been a laggard in terms of performance compared to Dubai index, which gained 12 per cent since January 1.

“Qatar index would continue to lag in terms of performance until they have tight liquidity in the banking system. The benefit from index inclusion is short-term, and I don’t think it will last,” said Manibhandu.

Qatar National Bank closed more than 3 per cent lower at 163 Qatari riyals (Dh164), while Qatar Islamic Bank closed more than 2 per cent to be at 110.80 riyals.

Profit-taking

Elsewhere in the Gulf, UAE traders took advantage of the intra-day bounce and resorted to profit-taking. The Dubai Financial Market General Index closed 0.25 per cent lower at 3,504.40. Analysts said the outlook remains bullish as 3,500 still holds strong.

Gulf Finance House closed more than 1 per cent lower at Dh0.980, while Arabtec also fell, closing less than half a per cent lower at Dh1.46. Emaar Properties closed almost flat at Dh7.10. Drake and Scull closed more than 1 per cent lower at Dh0.505.

Out of a total of 36 stocks traded on the exchange, shares of 25 firms fell, while other 8 rose. The Abu Dhabi Securities Exchange General Index closed 0.52 per cent lower at 4,471.01. Eshraq Properties closed more than 2 per cent lower at Dh0.82.

Elsewhere in the Gulf, Saudi’s Tadawul index closed 0.51 per cent at 6,098.61, while Muscat Securities MSM 30 index closed 0.63 per cent lower at 5,735.