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Qatari stocks surge to 2-year high

DUBAI: Qatari stocks climbed to a high of more than two years on Monday following strong growth figures and on hopes of generous dividends, while regional bourses were mixed.

Qatar Navigation jumped 7 percent while Qatar National Bank rose 3.2 percent and Industries Qatar added 2.6 percent. The index climbed 1.5 percent to 8,873 points, its highest close since September 2008.

"Qatar navigation results are expected to be better than 2009, after the merger with Qatar Shipping ," said Hani Girgis, assistant chief dealer with Dlala Brokerage.

"The profit for Qatar Shipping will be better (and benefit Qatar Navigation ). Some of the stocks which are gaining are also because they pay good dividends to investors."

On Monday, Qatar Statistics Authority released third-quarter nominal gross domestic product data showing a 21.1 percent rise on an annual basis and a 13.1 percent increase from the previous quarter.

Abu Dhabi's index and Oman's benchmark also advanced, with the latter rallying on optimism over a $78 billion five-year government development plan.

Galfar Engineering advanced 1.8 percent and Oman Cables Industries gained 2.1 percent.

"Galfar is amongst gainers as investors believe that the company will be beneficiary of increasing government spending," said Gunjan Gupta, head of research at Oman Arab Bank.

"Institutional investors are back in action and focusing on high dividend yielding stocks."

The Egypt index fell 0.1 percent to close at 7,073 points after touching a seven-month high of 7,142 points on Thursday.

Rising oil prices helped lift major stocks in Saudi Arabia, including heavyweight Saudi Basic Industries Corp. (SABIC) which rose 1.4 percent.

The Tadawul All-Share Index (TASI) edged higher by 0.31 percent at 6,676.66 points. The sector activity for the day was mostly positive with 11 out 15 closing with gains ranging from 0.05 percent by the Media and Publishing sector to 1.42 percent by the Multi-Investment sector, in addition the Hotel & Tourism had no changes. On the other hand the losing sectors ranged from 0.06 percent by the Banks & Financial Services sector to 0.69 percent by the Transport. The overall market breadth for the day was positive with 74 advancers against 43 decliners giving it an AD ratio of 1.72, the Financial Transaction House (FTH) said in its daily market commentary. The liquidity for the day reached SR3.38 billion.

Mohammad Al Mojil Group shares jumped 4.7 percent after saying it signed a $52.5 million contract with South Korea's Hyundai Engineering and Construction Co. to build an engine oil factory in Abu Dhabi.

But Shuaa Capital warned of possible difficulties ahead for Mojil, saying new contracts were coming in slower than expected.

"While we view this breakthrough in Abu Dhabi as a positive, we are of the view that the company is still facing many difficulties with the growth outlook deteriorating faster than expected through 2010," said an analyst note from Shuaa Capital.

Dubai's index fell 0.3 percent to 1,663 points on profit-taking following the previous session's 2.3 percent gain. The Abu Dhabi index climbed 0.4 percent 2,753 points.

The Omani index climbed 0.3 percent to 6,827 points.

The Kuwaiti index fell 0.1 percent to 6,948 points.

The Bahraini index slipped 0.3 percent to 1,428 points.

© Arab News 2011