Breaking News

Tweet TWEET

Qatar Shares Rise a Third Day This Week on Euro Zone Optimism

Qatar’s shares rose for a third day this week, led by Industries Qatar QSC (IQCD), as French and German officials said Greece will stay in the euro zone, allaying investor fears the country will default on its debt.

Industries Qatar, the Middle East’s second-biggest petrochemicals company, gained the most since June. Masraf Al Rayan (MARK), Qatar’s second-largest Shariah-compliant lender, advanced 1 percent. The QE Index (DSM) rose 0.3 percent to 8,347.74, the highest level since Sept. 11, at the 1 p.m. close in Doha. The gauge has slipped 0.2 percent this week. The MSCI Emerging Markets Index added 1 percent today.

“The mood is generally a bit more positive following the statements from European officials committing to saving Greece and the euro,” said Ahmed Talhaoui, the Abu Dhabi-based head of investment at Royal Capital. “Volumes in the region are still anemic.”

European and Asian shares climbed after French President Nicolas Sarkozy and German Chancellor Angela Merkel said late yesterday they are “convinced” Greece will stay in the euro area. Greek Prime Minister George Papandreou committed to meet deficit-reduction targets demanded as a condition for an international bailout, according to statements from governments in Athens, Berlin and Paris. The Stoxx Europe 600 Index rallied 1.6 percent at 2:37 p.m. in Dubai and the MSCI AC Asia Pacific (MXAP) Index rose 1.4 percent.

Eshraq IPO

About 5.5 million shares traded in Qatar today, compared with a 12-month daily average of 9 million, according to data on Bloomberg.

Industries Qatar rallied 2.6 percent, the most since June 9, to 122.6 riyals. Masraf al Rayan advanced to 24.25 riyals, the highest since July 11.

Eshraq Properties, an Abu Dhabi-based real-estate developer, closed at 51 fils, more than double its installment price, on its first trading day. The company offered 825 million shares in an initial public offering at 1 dirham each. Investors have paid 25 fils and will pay the remainder within two years.

Dubai’s DFM General Index (DFMGI) was little changed. Bahrain’s BB All Share Index decreased 0.4 percent. Kuwait’s measure and Abu Dhabi’s ADX General Index (ADSMI) retreated 0.1 percent while Oman’s gauge gained 0.4 percent. Saudi Arabia’s market is closed for the weekend.

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

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.