Qtel helps Qatar bourse to buck Gulf trend

MUSCAT MEASURE: Qtel's record 2008 profits boosted performance in its shares on Sunday. (Getty Images)

Qatar bucked a regional trend on Sunday rising by more 2.5 percent helped by Qatar Telecommunications Co (Qtel) which climbed after posting a 19-percent rise in fourth-quarter profits.

"This is long overdue. The Qatari market has been the worst performer since the beginning of the year but has the best macro-economic backdrop in the region," said Rami Sidani, head of investment for the Middle East and North Africa at Schroders.

"The cheap valuations do not reflect the growth rate that these companies will exhibit in 2009."

Qatar Gas Transport Co (Nakilat) and Industries Qatar continued to lead gains after boosting the index higher on Thursday.

Saudi Arabia was the biggest loser, falling more than 2 percent, led lower by Al Rajhi Bank and Saudi Basic Industries Corp.

Bank Muscat plunged 7.52 percent to weigh on Oman after two days of gains, reversing strength earlier in the day.

"Bank Muscat is off on general expectations of lower sector growth compared to last year. It has been consistently going down," said Ajeev Gopinathan, analyst at Gulf Investment Services in Muscat.

The bank's shares fell by more than 16 percent in February and have lost a further 10 percent since early March.

Industrial stocks continued to rise with Oman Cables Co ending more than 6 percent higher.

Kuwait's bourse fell for a second trading day on continued uncertainty over the fate of a government-proposed economy boost package amid tensions between the government and parliament.

Bahrain's index was dragged lower by Al Baraka Banking Group which dropped by nearly 9 percent.

Ithmaar rose 2.56 percent after it said it had put a planned merger of Shamil Bank unit with partly owned retail bank BBK on hold due to market uncertainty.

UAE stock markets were closed to mark the birthday of Prophet Mohammad.

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