Qatar posts biggest fall in month

Shares of Industries Qatar and Qatar National Bank led Doha to its biggest one-day loss in more than a month while Qatar Telecommunications (Qtel) bucked the trend as investors responded to its Indonesian expansion plans.

Industries Qatar ends 1.29 percent lower and Qatar National ends 3.67 percent down.

"The valuations on the DSM are the most expensive in terms of PE," said Samer al-Jaouni, general manager of Middle East Financial Brokerage Co.

"There is a reallocation especially from foreign institutions to other regional markets."

Qatar's PE is about 21 compared with about 15 in Dubai and Oman and 17 in Saudi Arabia, Jaouni said. The index closed 1.76 percent down at 11,875.09 points.

Qtel, which said on Sunday it completed the acquisition of PT Indosat TBK rose 1.84 percent up.

"Investors are reacting to the Indonesian news," said Amro Motasim, chief trader at Doha-based Ahli Bank.

"The company is diversifying and they have lots of cash and it will be saturated with the arrival of a new company, Vodafone in Qatar.

"By going internationally and globally it will guarantee its profit share." Motasim said.

Shares of Emirates NBD and Shuaa Capital weighed on Dubai, and National Bank of Abu Dhabi and Dana Gas pushed Abu Dhabi lower.

Emirates NBD closed 1.27 percent down and Shuaa tumbled 7.72 percent. The index closed 0.4 percent lower to 5,432.43 points. Ajman Bank fell for a fourth day after soaring on its debut on 22 June, ending 4.21 percent down.

"It was a quiet day in terms of volumes," said Mohamed Alami at Naeem Shares and Holding.

In Abu Dhabi, NBAD and Dana paced losses, falling 0.71 percent and 1.54 percent respectively. The index inched 0.06 percent lower at 4,957.21 points.

Shares of Oman Telecommunications Co (Omantel) and Bank Muscat weighed on Oman, but Bank Dhofar bucked the trend closing higher after announcing plans for a rights issue.

Omantel, which has gained more than 34 percent this year, slipped 0.04 percent and Bank Muscat, down 5.1 percent in 2008, closed 0.66 percent lower.

Bank Dhofar is the day's biggest gainer, rose 2.44 percent. The index ended 0.25 percent down at 11,484.23 percent.

Shares of Commercial Bank of Kuwait and Gulf Bank declined, leading Kuwait to a second consecutive day of losses. The index, which hit seven days of consecutive records until Tuesday, ended 0.23 percent down at 15,562.60 points.

Commercial Bank and Gulf Bank closed 2.6 percent down and 1.47 percent down respectively.

Bahrain's index bucked the regional downward trend, ending 0.08 percent up at 2,844.28 points. Al Salam Bank closed 2.26 percent up

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