Qatar’s index was the top performer, rising 1.3 percent in
its biggest gain since Sept. 5.
“Qatar outperformed its peers in Q3 and this will continue
for at least the next couple of quarters, so any investors nervous about
investing in the region are likely to be overweight in Qatar,” says Robert
Pramberger, acting head of asset management at investment firm The First
Investor in Doha.
“Qatar is lower risk and offers better returns. (Regional)
markets have put in a good performance over the past few months and Q3 results
were largely neutral, so the upside is limited for the time being.”
World stocks rose strongly, touching two-year highs, demand
for emerging sovereign debt increased and the dollar fell as the afterglow of
the Federal Reserve’s asset buying plan spread across markets, including those
in the Middle East.
“All Gulf currencies are pegged to the dollar apart from
Kuwait so buying anything will be better than sitting on cash,” says Hesham
Tuffaha, Bakheet Investment Group head of research.
“There’s no doubt there will be extra money supply, but the
question is whether it will be inflationary or not, so if you’re sitting on
cash it’s a lose-lose scenario — you could miss out on the momentum pushing up
asset prices and also lose from a devaluing dollar.”
Oil hit a fresh six-month high above $86, boosting sentiment
in the world’s top exporting region.
“Oil has broken above $83 after several failed attempts and
that helped lift sentiment,” says Shailendra Singh, head of asset management at
Al-Shurooq asset management company.
“The Fed’s move is a confidence-building measure and with
not many options, this money should eventually flow into equities.”
EFG-Hermes, Egypt’s largest listed investment bank, rose 3
percent to 31.30 pounds after JP Morgan rated it as “overweight” on Wednesday.
Emirates Telecommunications Corp. (Etisalat) fell 0.9
percent to a three-week low, a day after it set terms for its purchase of a
controlling stake in Kuwait’s Zain, making any deal dependent on the sale of
assets.
Zain rose 2.9 percent to a 14-month closing high of 1.44
dinars. Etisalat has offered to pay 1.70 dinars per share, while Zain was
trading at 1.26 dinars before the deal was announced.
Aldar Properties dropped 4.2 percent, extending losses since
the developer’s chief executive quit.
Abu Dhbai’s benchmark fell 0.4 percent to 2,751 points
while, Dubai’s index rose 0.2 percent to 1,738 points. Egypt’s stocks rose 0.8
percent to 6,765 points and Kuwait’s index climbed 0.09 percent to 7,125 points.
Oman shares also climbed 0.3 percent to 6,516 points and
Bahrain’s stocks rose 0.4 percent to 1,466 points.
