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Qatar Stock Exchange index hits 7-year high

Qatar Stock Exchange index

Doha, (Business News Report)|| The Qatar Stock Exchange index rose to its highest level in seven years, recording a 10% increase since the beginning of this year.

The Qatar Stock Exchange index gained its support from the industry sector, which rose by about 16.7 percent, and the banking sector, which jumped 6.5 percent. The two sectors constitute about 76 percent of the weight of companies.

The profits of the two sectors constitute about 88 percent of the profits of listed companies.

Financial analysts point out that the Qatar Stock Exchange index appeared at its highest level since February 2015, in addition to a noticeable increase in the daily trading values.

Since the beginning of the year, the average daily trading volume has reached 558 million riyals ($153 million). And the market value of stock exchange companies has increased to 731 billion riyals ($200 billion).

Analysts expect the Qatar Stock Exchange to continue to achieve qualitative leaps during the World Cup year.

The rise of the Qatar Stock Exchange index recently coincided with the successive announcement of the financial results of the 48 listed companies for the year 2021. The results showed a growth in profits so far by more than 25 percent.

Last week, the index received support from the results of Industries Qatar and its distributions. It announced the growth of its profits by about 347 percent, and the distribution of 100 percent of the nominal value of the stock at one riyal. This supported the performance of the index.

In the opinion of the financial analyst, Ramzi Kasmieh, the results of the industrial sector companies were very positive. The profits of the Industries Qatar increased by 347 percent, affected by the increase in the prices of “urea”.

The profits of Qatar Aluminum Manufacturing Company (QAMCO) increased by eight times, at a rate of 781 percent, as a result of the rise in aluminum prices globally and their highest levels in 14 years.

Traders and investors are awaiting the results of Mesaieed Petrochemical Holding Company, which will be announced on Monday. It is expected that it will achieve a significant jump in its profits.

Kasmieh explained that the performance of the Qatar Stock Exchange index is affected by the rise in oil and gas prices, and its impact on macroeconomic indicators.

The rise in energy leads to cash surpluses in the general budget, which increases government spending, which is positively reflected on the profits of companies, the Qatar Stock Exchange and the economy in general, he said.

As a result of the positive performance of the Qatar Stock Exchange, Kasmieh expects it to attract more companies and that the cash dividends disclosed so far are more positive than last year.

Reinvesting part of these dividends in the stock exchange will give it more impetus for performance in the coming period.

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