Qatar Exchange’s (QE) benchmark index surged above the 13600-pt level at the closing of Monday’s trades following strong buying of several leading and medium-sized stocks, the most important of which were Al Rayan, Qatar National Bank (QNB), Islamic Holding Group (IHG), Industries Qatar (IQ) and Qatar International Islamic Bank (QIIK).

The market’s main index soared by 0.76%, adding 102.8 pts, passing the 13600-pt barrier and closing at 13699.51 pts, compared to Sunday’s closing of 13596.66 pts.

Liquidity declined to QAR 429.73 million against QAR 950 million yesterday, with trade volume falling to 9.74 million shares against 17.5 million shares.

Buying and exchanging of positions hit many small and leading stocks, particularly Al Rayan, QNB, QIIK and Dlala Brokerage and Investments Holding, which rose by 2.8%, 1.8%, 1.9% and 1.4%, respectively, prompting the index’s rise today.

In a statement to Mubasher, Arab and global technical market analyst Ibrahim Al Filkawy said that traders on the Qatari market have begun to have their confidence restored following the positive news from the Gulf meeting.

On his part, Gulf and global market analyst Nashy Al Adawny told Mubasher that QE’s index will suffer strong resistance and selling pressures on the medium term between the levels of 13900 pts and 13993 pts. These levels have been tested twice during the past three months, he said, noting that the index could not pass them. Investors now believe and remember that these levels often incur intensive selling especially as reaching the first support level was accompanied by massive trading volumes and yet it could not pass those levels, Al Adawny stated, adding that these levels are considered risky and require that support at 13300 pts be maintained to renew testing these levels for a third time.

Breaking this level and closing below it for two successive sessions indicates that the index will return once more to test the support levels of 11450 pts – 11200 pts, he said, noting that the upward trend is likely to be shifted to a sideways movement in the coming weeks if the index does not overcome resistance at 13993 pts as well as closing above it for a week in order to continue the rising trend.

The market witnessed increased buying and exchanging of positions today on several leading stocks, Al Adawany affirmed, indicating that all aspects are in favour of the market’s rise following a wave of profit-taking, especially as investors’ morale is currently improving as well.

The banking, services, telecoms and real estate sectors led the market’s rise today as the banking sector surged by 1.7% as Al Rayan, Qatar Islamic Bank (QIB), IHG and QNB added 2.8%, 2.3%, 1.9% and 1.8%, respectively. Followed by the services sector, which gained 0.35% as Medicare, Al Meera Consumer Goods, and Widam Food Co. added 1.9%, 1.8% and 1.16%, respectively.

Moreover, the telecoms sector gained 0.28% as Ooredoo rose by 0.4%. The real estate sector inched up by 0.05% as Mazaya Qatar added 0.6%.

Al Filkawy said he expects confidence to be restored to the Qatari market gradually following the Gulf meeting so that the market makes up for its losses during the past week. From a technical perspective, the Qatari index will face primary resistance at 13720 pts. By staying above that level, the index will continue towards the next levels of 13920 pts and 14000 pts once more, he noted.

Should the index not maintain a position above the first resistance level of 13720 pts, it will move sideways between that level and the support level of 13500, he added, concluding that should the index break support and fall below it, it will target the level of 13300 pts.