10 September 2015
DOHA: Qatari stocks recovered its lost ground in the past two sessions, after positive remarks from the government and market leaders. The market nabbed one of the best gains in months yesterday gaining 228.95 points, or 2 percent, to close at 11,659 points.

The market gained 110 points on Tuesday after Finance Minister Ali Shareef Al Emadi said Qatar will not cut subsidies on fuel and food, contrary to reports from neighbouring economies. During a lecture at Carnegie Mellon University Qatar on Monday, Al Emadi noted that Qatar seeks to increase its foreign investments as part of its plans to diversify the economy.

On Tuesday, Qatar Exchange CEO Rashid Ali Al Mansoori announced the bourse is working to attract more companies to be enlisted. The QE's platform is ready to launch new products.

After finishing 1.88 percent down in August, the market has been trading in red territory during the first three sessions of September. The market was 5.1 percent down year-to-date.

Yesterday, QIGD (The Investors) rose to the maximum permissible limit of 10 percent. Nakilat , which announced its decision to raise foreign ownership limit to 49 percent on Monday, jumped 4.77 percent. Conglomerate Aamal surged 4.21 percent after it announced the establishment of its maritime transport subsidiary. Industries bellwether Industries Qatar (IQ) was up 2.09 percent. The entire banking stocks were up, with Masraf Al Rayan rising the most by 3.06 percent.

The entire sector indexes were up yesterday. Telecoms was the best performer, with Ooredoo surging 4.82 percent. Transportation gained 3.25 percent.

Analysts said the investors can remain in the market as long as the index closes above 10,250.

A technical analysis released by Global Research on Nakilat stock yesterday noted: "On the daily charts, the stock ended in a long bullish candlestick formation above the 20-day SMA (simple moving average) with increased participation, signifying the trend to be bullish. The 

RSI (relative strength index), a technical indicator used to chart the current and historical strength or weakness of a stock, is rising, corroborating the optimistic view on the stock.... We are bullish on the stock and expect it to rise further if it trades above QR22.40".

Stock markets across the Middle East rose yesterday, moving in line with global equities and largely ignoring oil prices, which gave up early gains and fell. 

Global shares also rose yesterday, led by an almost 8 percent surge in Japanese stocks as the prospect of more economic stimulus from China soothed investors rattled by recent market turmoil.

© The Peninsula 2015