Qatar’s bourse jumps to its highest level since September 2008 after an MSCI reclassification to emerging market status from frontier market.
The index rises 1.8 percent to 9,523 points, up 14 percent in 2013. It confirms this week’s break above major technical resistance at 9,290 points, the January 2011 peak.
Heavyweight stocks which analysts believe may be included in MSCI indexes lead gains. Qatar National Bank and Industries Qatar climb 3.8 and 2.5 percent respectively;Ooredoo (QTEL) adds 2.2 percent.
“This will only accelerate the institutional interest,” says Wafic Nsouli, head of institutional equity sales at Arqaam Capital in Dubai.
“We have seen inflows for most of the year in the region. MENA has been buzzing this year and regardless of the MSCI move, we would have expected the inflows to continue.”
UAE MARKETS ALSO UP
United Arab Emirates markets surge in early trade after MSCI reclassified them to emerging market status, with blue chips that could be included in MSCI indexes leading gains.
Dubai’s index rises 2.3 percent to 2,441 points. Dubai Financial Market, the Gulf’s only listed bourse, climbs 5.2 percent, while Emaar Properties gains 3.7 percent.
Abu Dhabi’s measure climbs 2.8 percent to 3,664 points. First Gulf Bank advances 6.9 percent.