Qatar Shares Fall Most in Two Weeks on Bank Earnings, Fed Economic Outlook

Qatar shares declined the most in almost two weeks after Qatar Islamic Bank said second-quarter earnings fell 35 percent and the U.S. Federal Reserve trimmed the growth forecast for the world’s biggest economy.

Qatar’s QE Index slipped 0.9 percent to 6,956.3, the most since July 4, at 11:40 a.m. in Doha, trimming its gain for the week to 0.6 percent. Qatar Islamic Bank, the Gulf state’s biggest lender complying with Muslim banking rules, retreated 3.5 percent as earnings fell short of analyst estimates. Commercial Bank of Qatar, the country’s second biggest bank, slid the most since July 1. The Bloomberg GCC 200 Index lost 0.2 percent.

“On the downside, Gulf markets are highly correlated with global markets,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “Investors are waiting for more second-quarter earnings.”

Companies from Gulf Arab nations started releasing earnings this month. Qatar Insurance Co. is expected to announce results today and Masraf Al Rayan, a Qatar based bank, will release earnings next week.

Federal Reserve officials at their June 22-23 policy meeting saw no need to boost stimulus to the economy, while trimming their forecasts for growth, meeting minutes released yesterday showed. The MSCI Asia Pacific Index fell 0.9 percent, the most in more than a week, and the Stoxx Europe 600 Index dropped as much as 0.6 percent.

Qatar Islamic Bank slumped the most since May 25 to 72.4 riyals. Net income slid to 301 million riyals ($83 million) from 462.4 million riyals a year earlier, according to Bloomberg News calculations based on an e-mailed release of first-half net income of 601 million riyals. The mean estimate of three analysts surveyed by Bloomberg was for a second-quarter profit of 353 million riyals.

Commercial Bank of Qatar declined 2.7 percent to 66.2 riyals, the lowest intraday level since July 8.

Abu Dhabi’s gauge and Oman’s MSM 30 Index were little changed. The Kuwait SE Price Index lost 0.4 percent while Bahrain’s gauge gained 0.2 percent. Dubai’s DFM General Index advanced 0.9 percent, bringing its increase for the week to 1.2 percent. Saudi Arabia’s market was closed for the weekend.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

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