Banks push Qatar higher

Dubai : Banks pushed Qatar’s stock market higher yesterday while Saudi Arabia’s market edged down as telecommunications firm Mobily plunged in the wake of a bigger-than-expected quarterly loss.

The Qatari index added 0.8 per cent to 9,579 points, outperforming the rest of the region and closing at its highest level since June 5, when a diplomatic crisis with neighbouring Arab states erupted. It is now just 3.5pc from its pre-crisis level, after dropping more than 10pc at one stage.

Corporate earnings and macroeconomic data have shown the economy is suffering only minor damage from sanctions imposed by the other Arab states, and a Reuters poll of economists last week found them predicting Qatar will remain one of the Gulf’s fastest-growing economies.

Doha Bank surged 2.3pc, Islamic bank Masraf Al Rayan rose 1.0pc and Qatar International Islamic Bank gained 0.5pc after reporting a modest year-on-year rise in first-half net profit.

Islamic insurer AlKhaleej Group surged 2.8pc in unusually heavy trade. Exchange data showed non-Arab foreign investors remained net buyers of Qatari stocks on Monday as Gulf investors continued to cut their Qatar holdings.

Saudi Arabia’s index, on the other hand, edged down 0.2pc with National Commercial Bank, the kingdom’s largest lender, tumbling 1.2pc after reporting a 0.9pc fall in second-quarter net profit to 2.42 billion riyals ($645.3 million) thanks to lower operating income; SICO Bahrain had forecast 2.63 billion riyals.

Etihad Etisalat (Mobily) plunged 7.2pc to 18.74 riyals after posting a quarterly net loss of 189.7 million riyals. Analysts had on average forecast a loss of 166 million riyals.

Banque Saudi Fransi gained 3.3pc after reporting a 4.1pc decline in quarterly net profit.

Retailer United Electronics jumped 5.0pc; it will pay a first-half dividend of 0.75 riyal per share on Aug. 20, with the stock going ex-dividend on Aug. 5.

Dubai’s index edged up 0.1pc as Amlak Finance, which had surged in the past two days after a partnership deal with property developer DAMAC, pulled back 1.7pc. The most heavily traded stock, builder Drake & Scull, added 2.0pc.

Egypt’s index edged up 0.3pc but Ezz Steel sank 1.6pc, falling for a fourth straight day after it reported worse-than-expected quarterly earnings last week.