Font Size

- Aa +

Sun 24 Apr 2011 11:49 AM

Font Size

- Aa +

Qatar falls on Qatar National Bank rights issue

Doha based benchmark slips 1.6% to its lowest intraday low since April 5, 2011

Qatar falls on Qatar National Bank rights issue
Qatari investor stock exchange

A sell-off in Qatar National Bank after the company announced a rights issue dragged Qatar's index to a three-week low.

"Rights issue capital increase is 25 percent at 100 riyals per share," said Hani Girgis, assistant chief dealer at Dlala brokerage.

QNB's share price fell as low as 136.50 riyals earlier from Thursday's close of 149.50 riyals, before retracing some of those losses. The stock is down 0.9 percent at 138.30.

Shares will be released in two weeks and investors are cashing in on Thursday's gains, Girgis said.

The benchmark slipped 1.6 percent to 8,513 points, its lowest intraday low since April 5.

The long-term outlook for the country, however, is upbeat. "There's a lot of valuation in the country, with the growth of the companies," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor.

"Getting in at current prices would be good, because the market will be up 20 percent by year-end," he said.