Qatar Shares Rise, End 6-Day Drop, as Oil Boosts Gulf Stocks; QNBK Gains
Qatar shares advanced, ending a six- day drop and leading Gulf markets higher, as Asian stocks increased and crude oil gained. Industries Qatar climbed the most in almost a month.
The QE Index rose 0.9 percent, the most since June 21, to 6,824.7. Industries Qatar, the second-biggest petrochemicals maker in the Middle East, gained 1.2 percent and Qatar National Bank SAQ added 1.9 percent before releasing earnings tomorrow. The Bloomberg GCC 200 Index advanced 0.7 percent and Dubai’s index increased 0.3 percent, paring the 2010 drop to 18 percent.
Emerging-market stocks advanced for a second day, led by technology companies, on speculation consumer spending will withstand a slowing global economic recovery. The MSCI Emerging Markets Index climbed 0.2 percent. Asian stocks rose, following the MSCI Asia Pacific Index’s biggest weekly drop in more than a month, amid takeover news in Australia and as a weaker yen boosted the outlook for Japan’s exporters.
“The simple fact that we woke up today and Asia was stable instead of down has some people feeling a little better,” said Akram Annous, deputy fund manager at Al Mal Capital PSC in Dubai. “Volumes continue to trend lower and that is obviously a clear reflection of investor interests.”
IFA Securities LLC, a Dubai-based brokerage established by Kuwait’s International Financial Advisors KSCC, closed after stock markets tumbled and volumes slumped. About 43 million shares traded in Dubai today, compared with a six-month daily average of 190 million. Eleven brokerages in the United Arab Emirates have either shut down this year or are in the process of closing, The National newspaper reported in June, citing the market regulator.
Crude oil gained as much as 56 cents to $72.70 a barrel in electronic trading on the New York Mercantile Exchange as investors bet the commodity’s biggest weekly drop since May made it cheap given the outlook for global growth. The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.
Industries Qatar advanced the most since June 10 to 96.1 riyals. Qatar National Bank, the Persian Gulf country’s biggest lender by assets, rose to 134.2 riyals. Five analysts surveyed by Bloomberg estimate that the company’s second-quarter earnings will increase 25 percent to 1.32 billion riyals ($363 million).
Drake & Scull International PJSC advanced 2.3 percent after the Dubai-based developer confirmed it was awarded a $120 million contract from Damac Properties in Saudi Arabia.
Saudi Arabia’s Tadawul All Share Index rose 0.5 percent to 6,030.32. Food processing company Halwani Bros Co. surged 9.8 percent, the most since June 2009, to 41.5 riyals after it said second-quarter profit increased 82 percent to 21.7 million riyals ($5.8 million).
Abu Dhabi’s benchmark index increased 0.2 percent and Oman’s MSM30 Index added 0.4 percent. Bahrain’s gauge and the Kuwait Stock Exchange Index were little changed. In North Africa, Egypt’s EGX 30 Index dropped for a ninth day, losing 0.8 percent to 5,850.38, the lowest in almost a year.