Continuing its gaining trend for the second consecutive day, the Qatar Stock Exchange (QSE) soared 112.5 points, or 1.15 percent, to close at 9,896.06 points on Tuesday.
The impressive gain was mainly driven by blue chip stocks that outperformed amid heavy trading.
The volume of shares traded increased to more than 112 million from 19.15 million on Monday and the value of shares traded increased to QR2.93 billion from QR561 million in the previous session.
Qatar’s blue-chip lender Qatar National Bank added 1.8 percent to drive the banks and financial services index higher by more than 1 percent.
Petrochemical maker Mesaieed Petrochemical Holding Company (MPHC) rose 2.9 percent. MPHC has risen in most recent sessions after MSCI decided to include the stock in its emerging market index.
Other blue chip stocks like Qatar Islamic Bank (QIB), Industries Qatar and Ooredoo gained 1.65 percent, 0.7 percent and 4.65 percent respectively.
Heavyweight stock Qatar Electricity and Water Company (QEWC), which gained 6.24 percent, was also instrumental in lifting the main index higher.
Total wealth of investors increased by more than QR5 billion to QR544.34 billion on a day that saw 23 of the 43 stocks traded making gains. While 17 stocks closed lower, there was no change in the price of the remaining three traded stocks.
The telecom sector index, which gained 2.99 percent on the back of huge gains in Ooredoo, was the best performing sector for the day.
The Industrial sector index that gained 1.64 percent was the second best performing sector index. Gulf International Services (GIS), the largest listed service group in Qatar, was one of the main supports to the index. The GIS stocks gained 3.77 percent outperforming most of its peers in the group.
In a testimony to the various efforts by the QSE to boost liquidity, the day saw total number of trades rise to 17,326 from 11,716 in the previous session.
According to a recent report, Qatar’s stock exchange is developing two new Exchange Traded Funds to boost foreign investment.
The QSE-listed companies increased foreign ownership limits to 49 percent, most of which had previously been set at 25 percent, attracting a flood of cash that helped boost the main index by more than 20 percent last year.
“Now the minimum will be 49 percent for all Qatari companies. This will attract more liquidity and more room for foreign investors to invest,” the report quoted QSE Chief Executive Officer Rashid al Mansoori as saying.
The day also saw foreign investors remain bullish and account for more than 83 percent of total buy at the end of the trading session.
Out of the seven sector indices, five ended in green zone and two sectors in red zone.
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