Qatar’s stock market has given thumbs up to the outcome of the US election. Share prices have showed unabated rally since the beginning of counting of votes, showing the optimism of investors.
The QE index has bounced over 200 points in the last four trading sessions. QE index, which measures the 20 largest and most liquid stocks, climbed to 9908 points yesterday from 9701 points on November 3.
Investors began their buying spree after voting stopped on November 3 and start of vote counting from November 4. In the last four trading sessions, the stock market moved in sync with every important news favouring the democratic presidential challenger Joe Biden.
The rally strengthened with every news that increased the chances for Joe Biden. Finally after three days of uncertainty filled vote counting, Joe Biden won the presidency on Sunday.
“The US election result has brought much needed clarity- that who will be next the President of US. Uncertainty keeps investors out of the stock market while stability and clarity brings money back to shares. Once it became clear that who will be the next US President, buying interest came back in the market,” Ahmed Akl, Doha based financial analyst told The Peninsula.
“However, going forward the market direction will depend on how Joe Biden handles coronavirus pandemic, his stance on Quantitative Easing, and how he moves forward on the issue of trade war with China,” he added.
Although QE index has moved up consistently in since last Tuesday, but the biggest gain was registered on Thursday when QE index surged 162.51 points, or 1.67 percent to close at 9,889.46 points.
The rally in the stock market has been broad based as all the sectoral indexes have also surged in the past four trading sessions. Shares in banking and financial , real estate, consumer goods, industrial, telecom and transportation sector have gained in the past four trading sessions.
The QE Total Return Index has surged around 400 points, as it closed yesterday at 19,048.45 from Tuesday’s closing of 18,649.86. The All Share Industrials Index has jumped over 80 points in the past four trading sessions to close at 2842, yesterday.
Similarly, All Share Real Estate Index gained about 88 points to close at 1,874.41 while All Share Banks & Financial Services Index gained about 73 points to close at 4178.47 yesterday.
The QE index closed up by 18.9 points, or 0.19 percent at 9908.34 yesterday. The volume of shares traded yesterday increased to 336 million from 128 million on Thursday while the value of shares increased to QR394 million from QR280.9 million on Thursday.
Indices of four sectors ended in the green zone, while three sectors closed in the red zone.
QSE Total Return Index gained 0.19 percent to close at 19,048.45 points. QSE Al Rayan Islamic Index increased 0.59 percent to close at 4,074.93 points. QSE All Share Index was up 0.13 percent to close at 3,062.62 points.
SOURCE: THEPENINSULAQATAR