Qatar Exchange’s benchmark index continued its upward trend on Tuesday, which it had commenced yesterday, after penetrating the resistance level of 13720 pts amid strong buying of several leading and medium-sized stocks, particularly Qatar National Bank (QNB), Ezdan Holding, Qatar Islamic International Bank (QIIK), Commercial Bank of Qatar (CBQ), Vodafone Qatar and Ooredoo.

The benchmark index added 0.31% or 42.7 pts, closing at 13742.22 pts compared to yesterday’s closing of 13699.51 pts.

Liquidity surged to QAR 787.6 million against QAR 429.73 million yesterday as 16.83 million shares changed hands against 9.74 million.

Buying and increasing of positions were carried out on several leading and minor stocks, the most important of which were QNB, Ezdan Holding, QIIK and Gulf Insurance Co., which prompted the index’s rise today after gaining 2.7%, 0.2%, 0.5%, and 0.7%, respectively.

Amir Al Mansour, accredited capital market analyst and Gulf company asset manager, told Mubasher in a phone interview that speculations took the market by storm after the Gulf region overcame the political differences amongst its member states. Liquidity was seen at high levels today indicating traders’ restored confidence in the market, particularly those of foreign portfolios which had panicked last week, he added

Several indices had required profit-taking, which they saw during the previous sessions, Al Mansour said, noting that all aspects are in favour of the market’s rise following a wave of profit-taking, especially as investors’ morale is currently improving.

The Qatari economy is known for its strength and diversity, making it attractive for foreign portfolios to invest in its stock market, he added.

The telecoms, banking and insurance stocks prompted the index’s gains today as the telecoms sector rose by 1.8% following gains by Ooredoo and Vodafone Qatar by 2.4% and 0.28%, respectively. Moreover, the banking sector added 0.9% as QNB, CBQ, and Doha Bank gained 2.7%, 2.02% and 0.65%.

The insurance sector rose slightly by 0.14% as Qatar General Insurance and Reinsurance Co. and Qatar Islamic Insurance Co. added 2.7% and 1.16%.

Meanwhile, the real estate, industrials, services and transport sectors fell 0.65%, 0.26%, 0.17% and 0.13%, respectively.

Speculators sold leading stocks, cutting the index’s gains at the closing of today’s session, Al Mansour explained, noting that Al Rayan, QIBK and Industries Qatar (IQ) were amongst the decliners, after shedding 1.05%, 1.18% and 0.68%, respectively.

The Qatari index is expected to continue its gradual rise throughout the week, Al Mansour stated, concluding that passing the 13720-pt level today and staying above it will enable the index to target the levels of 13920 pts and 14000 pts, respectively, once more.