QE index down 0.6%, Kuwait’s bourse up

REUTERS

DUBAI

QATAR’S index shed 0.6 percent on Sunday, its second decline from Wednesday’s 57-month high.

The United Arab Emirates and Qatar surged last Wednesday after an announcement by index compiler MSCI that it would upgrade the two countries to emerging market status. But since the markets had already gained sharply this year, the positive impact of the news has been shortlived.

Traders said Qatar was not, however, significantly affected by news that the central bank had tightened its curbs on how much banks could invest in stocks and bonds, lowering the cap to 25 percent of their capital and reserves.

The rules may not have much immediate effect in forcing banks to sell securities because not all banks have reached the limits, and since the time frame for banks to comply is not yet clear.

Kuwait’s bourse rose on Sunday on what traders said was buying by governmentlinked funds ahead of a politically sensitive court ruling. After the close, the court dissolved parliament and called for new elections, bringing fresh uncertainty to the Gulf state.

Most other regional markets fell in heavy selling, dragged down by escalating geopolitical tensions surrounding Syria and the shaky global environment for emerging markets.

Kuwait’s measure climbed 0.3 percent, halting a twosession losing streak. The market is still up 34.1 percent year-to-date, in a rally driven mainly by retail investors, who have been encouraged by a government push on economic development and expected improvement in corporate earnings.