Qatar's stock market falls after FIFA comments

Mortgage lender Amlak Finance surged by its daily limit of 15% for a fourth session in a row
Qatar's stock market falls after FIFA comments
(AFP/Getty Images)
By Reuters
Mon 08 Jun 2015 12:40 PM

Qatar's bourse fell in early trade on Monday after a senior FIFA official said Doha could be stripped of World Cup hosting rights if evidence emerges of bribery in the bidding process, while Dubai's Amlak surged further at the expense of other stocks.

The Doha index edged down 0.4 percent as most stocks fell. But heavyweight Qatar National Bank added 1.2 percent, offsetting some wider market losses.

Domenico Scala, the independent chairman of FIFA's audit and compliance committee, told a Swiss newspaper on Sunday that no evidence of vote-buying had emerged, but that if it did, Russia's and Qatar's winning bids -- respectively, for the 2018 and 2022 tournaments -- would be invalidated.

Investors in the Gulf state have reacted nervously to all announcements since the initial arrests of several FIFA officials and the launch of criminal probes against them.

Although most government spending is likely to continue with or without the cup, losing it would deal a blow to Qatar's reputation and to sentiment among local retail investors.

Elsewhere in the Gulf, Dubai's index slipped 0.2 percent as investors were dumping most stocks and buying shares in mortgage lender Amlak Finance, which surged 15 percent, which is its daily limit, for a fourth session in a row and accounted for more than half of total traded value.

Amlak resumed trading last week after being suspended for nearly six years because of debt problems. Dubai's index has roughly doubled in that time.

Abu Dhabi edged up 0.3 percent as blue chips telecommunications firm Etisalat climbed 0.9 percent.

Oman's bourse was nearly flat and Kuwait  edged down 0.5 percent.

For all the latest GCC news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.