Qatar Stocks Decline the Most in a Year, Saudi Shares Tumble As Well

The benchmark stock gauge of Qatar has experienced the biggest decline in more than a year after the earnings estimates were missed by the Qatar Gas Transport Co. Apart from that, investors freed up funds as well for share sale of the Doha Global Investment. The benchmark index of Qatar, the QE Index went down by 1.2%, marking is biggest tumble since January, 2012. The gauge is currently at 8381.03. On the other hand, the BGCC200 Index, which is used for tracking companies in the Gulf Cooperation Council, has declined by 0.8%, thereby, marking its biggest decrease since 25th November.

Doha Global Investment will be seeking to raise $3 billion in an initial public offering to the Qatari Nationals on next month, according to a statement released by the Qatar Exchange. On a whole, a total of 5.8 million shares were traded today in Qatar Stock Exchange. Incidentally, the daily average of the last 12 months has been 6 million shares.

The Deputy Head of Asset Management at Al Mal Capital PSC, Tariq Qaqish, believes that the drop in Qatar gauge is a combination of investors selling in preparation for the IPO and also the disappointment generated due to the corporate earnings figures. Qaqish added that the investors are kind of worried at this point of time as they feel that the IPO will dry the liquidity.

When it comes to the companies, Nakilat, which is known as Qatar Gas as well, declined by 2.1%. The 1st quarter profit of the company increased less than 1% to 177.2 million Riyals. Incidentally, the investors expected the profits to be of 210 million Riyals. On the other hand, National Leasing dropped to its lowest figure since August, 2011 as it reported a decline of 11% in the 1st quarter profit of the same. The shares experienced a tumble of 2.5% and each share is currently priced at 32.95 Riyals.

Coming to other countries in the region, the benchmark gauge of Saudi Arabia, Tadawul All Share Index experienced a tumble of 0.4%. Banque Saudi Fransi declined by 6.6%, its biggest since March, 2011. Each share of the same is now priced at 29.80 Riyals. The bank is partly owned by Credit Agricole SA and it stated that the first quarter net income has declined by 13% for the same.