Sunday, October 23, 2011

Qatar Shares Rise Most in Almost Two Weeks on Earnings Outlook, Oil Gains - Bloomberg

Qatar’s shares gained the most in almost two weeks after United Development Co. (UDCD) said earnings more than quadrupled and oil advanced for a third week.

United Development, the Qatari real-estate and energy investor, headed for the biggest gain in more than seven years. Qatar Electricity & Water Co. (QEWS), the Middle East’s second-biggest utility by market value, rallied 4.6 percent before earnings scheduled for later this week. Qatar’s QE Index (DSM) advanced 0.7 percent, the most since Oct. 12, to 8,422.82 at 11 a.m. in Doha. The Bloomberg GCC 200 Index (BGCC200) climbed less than 0.1 percent.

Qatar’s “earnings are good, which has been good for medium to long-term investors,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities.

Qatar National Bank SAQ (QNBK), the Persian Gulf country’s biggest bank by assets, posted a 31 percent gain in third-quarter profit on higher income from lending. Qatar, the host of the 2022 soccer World Cup and biggest exporter of liquefied natural gas, expects economic growth of about 16 percent in 2011 and projects a budget surplus of $6.1 billion this fiscal year.

United Development shares soared 10 percent to 20.91 riyals, poised for the biggest surge since July 2004. Nine-month profit soared to 1.8 billion riyals ($494 million) from 443.6 million riyals a year earlier.

Qatar Electricity shares rallied 4.6 percent, the most since April 13, to 145.9 riyals. The utility may report a 16 percent increase in third-quarter earnings to 424 million riyals on Oct. 27, according to the median estimate of three analysts on Bloomberg.

Crude for November delivery rose 0.7 percent to $87.40 a barrel last week. The contract has surged 10 percent the past three weeks. Gulf Arab oil exporters, including the Saudi Arabia and Qatar, supply about a fifth of the world’s oil.

The DFM General Index (DFMGI) dropped 0.2 percent. About 12 million shares have traded in the emirate today, compared with this year’s daily average of 108 million shares. Abu Dhabi’s ADX General Index (ADSMI) was little changed.

“The U.A.E. markets are quiet as they await earning disclosures by corporates,” Al Fajer’s Farhat said.

Oman’s gauge, Kuwait’s measure and Bahrain’s BB All Share Index gained less than 0.1 percent. Saudi Arabia’s Tadawul All Share Index (SASEIDX) was little changed.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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Source: http://www.bloomberg.com

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