Qatar’s shares rose to the highest level in two years, leading gains in the Persian Gulf, and global markets rallied as Ireland applied for a bailout, easing concern the nation’s financial crisis will spread. Oil advanced.
Industries Qatar, the second-biggest petrochemicals maker in the Middle East, jumped 2.3 percent and Qatar Navigation, a freight transportation company, increased to the highest since September 2008. The QE Index jumped 1 percent to 8,273.07, the highest since October 2008, at the 12:30 p.m. close in Doha. The Bloomberg GCC 200 Index gained 0.4 percent.
Markets are “taking their cue from Asian markets and in general the Irish bank bailout,” said Shehzad Janab, head of asset management at Dubai-based Daman Investments PSC. “Volumes are still relatively light.”
Ireland sought international aid to help fund itself and save its banks, becoming the second euro member to need a rescue from the International Monetary Fund and the European Union. Irish Prime Minister Brian Cowen said on Nov. 21 that he expects talks on the details of financial assistance to be completed in the “next few weeks.” Finance Minister Brian Lenihan said the loan will be less than 100 billion euros ($137 billion), declining to provide further details.
Demand for Oil
Oil advanced, rebounding from its biggest weekly loss in three months, on optimism an agreement to rescue Ireland’s banks will prevent Europe’s debt woes from sapping economic growth. Crude for January delivery gained as much as 1.7 percent to $82.87 a barrel on the New York Mercantile Exchange.
The six nations of the Gulf Cooperation Council supply about a fifth of the world’s oil.
About 9.8 million shares traded in Doha today, compared with a 12-month daily average of 7.6 million. Industries Qatar increased to 131 riyals, the highest since October 2008. Qatar Navigation jumped 2.2 percent to 89.6 riyals.
Qatar Telecom QSC, the country’s largest company by revenue, and Princesse Holding of Tunisia will buy 50 percent of Telecom Tunisie for $1.2 billion from Egypt’s Orascom Telecom Holding SAE.
Qatar Telecom’s unit Wataniya Telecom signed an agreement with a group led by Princesse Holding, a diversified holding company, to acquire the stake, Qatar Telecom said in an e-mailed statement today. Wataniya already holds 50 percent of Tunisiana. Qatar Telecom shares rose less than 0.1 percent.
Oman’s MSM30 Index fell 0.1 percent, while Kuwait’s gauge dropped less than 0.1 percent. Saudi Arabia’s Tadawul All Share Index was little changed. Abu Dhabi’s ADX General Index rose 0.4 percent and Dubai’s measure gained 0.5 percent. Bahrain’s measure lost 0.4 percent.
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