It literally has been a windfall for investors on the Qatari bourse over the past several trading days as they have been getting richer in what analysts describe as a record stock recovery.
Investors gained an incredible QR10.63bn in a single trading day yesterday as the market capitalisation of the bourse, the Doha Securities Market (DSM), went up to QR279.34bn from QR268.71 on Thursday.
The main index of the DSM jumped 324 points, or 5.12 per- cent, at the close of trading yesterday breaching the psychological barrier of 6,500 to 6,640.
Reopening for the week after Thursday, the market saw hectic buying, especially from foreign institutional investors. Their buy volumes remained high at 2.34 million totalling QR138m in terms of value.
The index gain over the past six straight trading days has been more than 1,000 points, or close to 18 percent, a record of sorts.
There is a gush of liquidity into the market as investor confidence is back with a bang, analyst Thamer Hassan said.
“Large cap stocks like Industries Qatar (IQ) are leading the rally.” The fear of the global financial crisis adversely impacting world, regional and local stocks has vanished from the minds of investors and the confidence-building measure is aided by the large-scale return of foreign institutional investors, understandably among them, western pension funds and regional institutional players.
Trading figures show a significant increase in net buying from non-Qatari institutional investors, stock brokerage community sources point out.
The industrial counters were top performers yesterday with IQ leading the pack with a record 7.2 percent gain.
Its shares ruled at QR109.30 from the previous close of QR101.90.
The Qatar Gas Transport Company, Nakilat, which led trading last week, also surged 3.64 percent with its stocks breaching the QR25 level to reach QR25.60.
The second best performer was the lenders’ sector with a 5.15 percent gain. All the banking shares were up and the only entity that suffered minor loss was First Finance, an Islamic financial services company which is the lone non-banking stock in the pack.
To most investors, the current rally reminds the bullish run that was witnessed during the excited run-up to the opening of the DSM to foreigners in early 2005.
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