Mubasher: Profits of the Qatar Stock Exchange’s (QSE) stocks are expected to increase 78.5% year-on-year to QAR 9.08 billion ($2.49 billion) in the fourth quarter of 2017, Qatar National Bank (QNB) said in a report issued on Sunday.
According to the bank’s estimations, Industries Qatar (IQCD), Gulf International Services (GISS) and United Development (UDCD) will significantly contribute to the growth in quarterly/year-on-year basis, according to the report.
Quarter-on-quarter, the largest lender in the Middle East and Africa by assets forecast that Qatari stocks’ profits would decline 0.6% in Q4-17.
Companies’ dividends are the main catalyst for encouraging trading of their equities, as most firms are expected to distribute generous dividends leading to attractive dividend yields, the report highlighted.
On the other hand, the QSE’s general index is still down 7.9% from its pre-embargo level, so Q4-17 profits would not deem major market-boosting catalysts. .
“Longer-term, attractive fundamental drivers and a significant spending program should provide tailwinds for growth,” QNB said.
In the first nine months of 2017, 44 listed companies fell 6% to QAR 29.3 billion from QAR 31.1 billion in the same period a year earlier.
