Font Size

- Aa +

Wed 2 Dec 2009 10:42 AM

Font Size

- Aa +

Qatar market bucks downward trend to end higher

UPDATE 3: Blue chips soar, while Zain stocks drag Kuwait, Bahrain ends down.

Blue chips soared on the Qatar exchange which bucks the downward trend in other Gulf Arab markets, finishing more than five percent higher.

Industries Qatar

surged 6.6 percent and
Qatar National Bank

advanced 6.4 percent.

Banking stocks took a beating on Tuesday, the first trading day since news of Dubai World's debt restructuring moves last week. The index fell more than 8 percent on Tuesday.

"Qatar, which was unfairly and disproportionately hit by events in Dubai, is enjoying the return of value seeking investors," says Daniel Broby, chief investment officer at Silk Invest, a regional asset management firm.

"It is a no-brainer to buy the likes of
Qatar Telecom

, on a forward PE of 7.8 and
Qatar Electricity

on a forward PE of 11.23, in a country that will grow GDP by 16 percent."

Qatar Electricity and Water

rose 5.4 percent and
Qatar Telecom

advanced 7.9 percent.

The index ended 5.3 percent higher at 6,949 points.

Meanwhile,
Zain

and other heavyweights dragged Kuwait's index to a lower close, after the mobile telephone firm took a beating on news that an Indian company has put plans to buy into
Zain

on hold.

Zain

closed down about 1 percent after falling about 6 percent during the session.

Islamic lender
Kuwait Finance House

slipped nearly 2 percent and logistics firm
Agility

declined 6 percent.

"Kuwait is following its own fundamentals which are not so good at the moment," says Shakeel Sarwar, head of asset management at Sico investment bank.

"The
Zain

issue has been a major drag on the Kuwait market in the last three months, and there is still downward pressure on its share price."

The benchmark retreated 1.4 percent to 6,651 points.

Among other Gulf markets, Bahrain's index ended marginally lower, falling 0.1 percent to 1,437 points. (Reuters)