Qatar Shares Drop Most in 15 Months on Earnings, Share Sale

Qatar’s benchmark stock index fell the most in more than a year after Qatar Gas Transport Co.’s earnings missed estimates and as investors freed up funds for the share sale of Doha Global Investment. Egypt’s EGX 30 rose.

Qatar’s QE Index retreated 1.2 percent, the most since January 2012, to 8,381.03 at the close in Doha. Qatar Gas, known as Nakilat, slid 2.1 percent, while National Leasing dropped to the lowest level since August 2011 after reporting an 11 percent decline in first-quarter profit. The Bloomberg GCC 200 Index, which tracks companies in the Gulf Cooperation Council, decreased 0.8 percent, the most since Nov. 25, at the close in Riyadh, led by Banque Saudi Fransi.

Doha Global Investment will seek to raise $3 billion in an initial public offering to Qatari nationals next month, according to the Qatar Exchange. About 5.8 million shares were traded today in Doha, compared with a 12-month daily average of about 6 million shares, according to data compiled by Bloomberg.

The drop is “a combination of investors selling to prepare for the IPO and disappointment of corporate earnings so far,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital PSC. “Investors are worried that the IPO will dry the liquidity.”

Nakilat retreated to 15.63 riyals. First-quarter profit rose less than 1 percent to 177.2 million riyals, that missed estimates of 210 million riyals by Qatar National Bank Financial Services and 207 million riyals by EFG-Hermes Holding SAE, according to data compiled by Bloomberg. National Leasing shares declined 2.5 percent to 32.95 riyals.

Profit Drops

Saudi Arabia’s benchmark Tadawul All Share Index declined 0.4 percent. Banque Saudi Fransi plunged 6.6 percent, the biggest drop since March 2011, to 29.80 riyals. The bank partly owned by Credit Agricole SA said first-quarter net income fell 13 percent.

Elsewhere in the Persian Gulf, Abu Dhabi’s index rose 0.2 percent, while Dubai’s DFM General Index was little changed. Bahrain’s gauge advanced 0.4 percent, Oman’s MSM30 Index rose 0.1 percent and Kuwait’s measure declined 0.2 percent.

Egypt’s benchmark EGX 30 Index climbed 1.3 percent. EFG-Hermes, the country’s biggest investment bank, increased 2.7 percent to 10.66 pounds, the highest level since March 19. Commercial International Bank Egypt SAE, the nation’s biggest publicly traded lender, gained 3.2 percent.

Israel’s TA-25 Index lost less than 0.1 percent. The yield on the government’s 4.25 percent bonds due in 2023 declined two basis points, or 0.02 of a percentage point, to a record 3.76 percent, according to data compiled by Bloomberg.

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