* Qatar hits new all-time highs, closing and intra-day
* Driven by govt spending, MSCI hopes, catch-up with Dubai
* Arabtec lifts Dubai but market remains volatile
* Aldar results boost Abu Dhabi
* Food maker Wafrah tops Saudi turnover ahead of AGM
By Olzhas Auyezov
DUBAI, May 12 Qatar's bourse continued to
conquer new highs on Monday while markets in the United Arab
Emirates and Saudi Arabia recovered from the previous day's
The Doha benchmark rose 0.6 percent to a new all-time
closing high of 13,067 points. The measure closed just below the
2005 intra-day high of 13,069 but set a new intra-day peak of
13,080 points earlier in the day.
Ali Adou, portfolio manager at The National Investor, said
the two major factors driving growth in Qatar's market were
valuations and the performance of the UAE markets, especially
Dubai, which this month will, together with Qatar, move to the
emerging market index compiled by MSCI.
Although Qatar trades close to the Middle East and North
Africa (MENA) average in terms of price-to-earnings ratio, the
massive spending planned by its government could justify higher
multiples, Adou said.
Qatar plans to boost government spending by 18 percent to
210.6 billion riyals ($57.8 billion) in the 2013/14 fiscal year
as it implements a large-scale infrastructure building programme
in preparation to host the 2022 World Cup soccer tournament.
And, since MSCI announced the index upgrade last June, Dubai
has outperformed Qatar by about 86 percent, he said, prompting a
MSCI will announce the names of stocks from both countries
that it will include in the index late on Wednesday and the
adjustment takes effect at the end of this month.
"I think the international investors are positioning
themselves in Qatar (ahead of the MSCI upgrade)," Adou said.
Dubai's bourse closed up 1.5 percent after diving
as low as 2.5 percent early in the session. Builder Arabtec
Holding was both the most volatile stock and the main
support, rising 7.8 percent after dropping 8.5 percent during
Trading volume in Arabtec was higher on upswings, though,
and more than doubled compared with Sunday.
Shares in another Dubai-based construction company, Drake
and Scull, fell 2.3 percent after the firm missed
analysts' expectations with a 27.1 percent decline in
first-quarter net profit, citing unforeseen delays to two major
projects in Saudi Arabia.
Abu Dhabi's bourse edged up 0.4 percent. Developer
Aldar Property was one of the main supports as it gained 3.9
percent after posting a three-fold increase in first-quarter
Saudi Arabia's index climbed 0.2 percent. Food
manufacturer Wafrah topped the trading volume, jumping
8.0 percent after it called an annual meeting on May 14 to
discuss last year's profit distribution.
* The index rose 1.5 percent to 5,214 points.
* The index edged up 0.4 percent to 5,007 points.
* The index climbed 0.6 percent to 13,067 points.
* The index added 0.2 percent to 9,776 points.
* The index edged up 0.2 percent to 8,244 points.
* The index slipped 0.3 percent to 7,390 points.
* The index rose 0.4 percent to 1,472 points.
* The index slid 0.5 percent to 6,746 points.