Qatar's index climbed for a fifth straight session on Tuesday and Egypt's bourse hit an eight-month high, as investor sentiment boosted trade, while other regional markets were mixed. Industries Qatar gained 1.5 percent, as the Doha index continued its rally from a two-year high a day before.
"Since the start of the year, there has been a positive momentum in Qatar's market that was carried forward from last year," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor. "Volumes have been quite good and most stocks are gaining."
Pramberger said the surge began after the Gulf Arab state won the rights to host the soccer World Cup in 2022. "Sectors like infrastructure, shipping and even banks will benefit as Qatar will spend in preparations for the World Cup," he said. Qatar's bourse was the top performing market in the region last year with gains of more than 24 percent, according to Reuters data.
The index now inches towards the 9,000 points mark, which was last reached in the third quarter of 2008. Egypt's index was boosted by construction-related stocks like Orascom Construction that gained 3.4 percent on optimism that big infrastructure projects would boost their earnings. The index achieved its biggest gain since September 13, closing up 1.8 percent at 7,200 points, its highest level since early May.
A church bombing during a New Year's service in Alexandria killed more than 20 people and sparked street protests, causing the index to dip on Monday. "We are currently seeing a re-boost of confidence after the Alexandria incident," said Cairo-based trader Nader Khedr.
"Investors are optimistic (that a state-backed infrastructure drive) implies more buying and higher revenues for building materials." Ezz Steel gained 3.2 percent. Investment bank EFG-Hermes jumped 4.5 percent. Saudi Basic Industries Corp closed at its highest value in more than two years, lifting the index by 0.4 percent.
SABIC gained 1.4 percent, buoyed by global oil prices that hovered near the highest price levels in more than two years on accelerating manufacturing activity in developed economies and expectations that US crude inventories will continue to drain. SABIC ended at 108.50 riyals, its highest close since September 2008, according to Reuters data.
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