Qatar Stocks Gain on Bets Two-Week Drop Overdone; Dubai Climbs
Qatar’s benchmark index rose the most this month on investor speculation declines in the past two weeks were overdone. Dubai shares also advanced.
The QE Index (DSM) climbed 0.6 percent, the biggest gain since Aug. 29, to 9,257.81 at the close in Doha. The measure lost 9 percent in the previous two weeks. Fifteen of the 20 shares in the gauge increased today, with Qatari Investors Group rising 2.1 percent. Telephone operator Ooredoo QSC climbed the most since Aug. 14. Dubai’s DFM General Index gained 1.5 percent after tumbling 7.4 percent last week.
Declines in the past weeks, triggered by concern the U.S. would take military action against Syria after the government’s alleged use of chemical weapons, had left Qatar’s benchmark at a price-to-book value of 1.6 on Sept. 5, the lowest since May 16. The Standard & Poor (SPX)’s Index erased almost all its gains Aug. 6 amid an escalation in tension over Syria.
“Ferocious de-risking has brought valuations down to compelling levels for a growing number of regional companies,” Akber Khan, director of asset management at Al Rayan Investment in Doha, said by telephone today. “Some are eager to step in to take advantage.”
Qatar’s economy will grow 5.2 percent this year and next, according to the median forecast of 17 economists on Bloomberg. That compares with growth projections of 1 percent and 2 percent for the Group of 10 nations.
Saudi Arabia’s Tadawul All Share Index (SASEIDX) and Bahrain’s gauge were little changed, rising less than 0.1 percent. Kuwait’s measure advanced 0.3 percent, Oman’s 0.6 percent, while Abu Dhabi’s benchmark index declined 0.3 percent. Egypt’s EGX 30 Index increased 0.3 percent.
Israel’s TA-25 Index (TA-25) lost 1.2 percent, the most since Aug. 27, and government bonds declined. The yield on the benchmark 4.25 percent notes due March 2023 rose five basis points, or 0.05 percentage point, to 4.11 percent, the highest since Feb. 13.
To contact the editor responsible for this story: Claudia Maedler at email@example.com