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Abu Dhabi, UAESaturday 15 December 2018

Qatar stocks slide ahead of 13 demands deadline

Qatari stocks fell as the rift with Arabian Gulf neighbours showed no sign of easing ahead of a crucial deadline.

Stock information are seen at Qatar Stock Exchange in Doha. Reuters
Stock information are seen at Qatar Stock Exchange in Doha. Reuters

Qatari stocks fell as the rift with Arabian Gulf neighbours showed no sign of easing ahead of a crucial deadline.

The QE Index, which resumed trading after a one-week public holiday, lost 1.8 per cent as of 9:48am in Doha, led by Industries Qatar QSC’s 2.6 per cent loss.

The emirate is prepared to miss the deadline tomorrow for complying with 13 demands set by Saudi Arabia, the UAE and other Arab nations, the Qatari foreign minister Mohammed Al Thani said on Saturday, which threatens to extend the blockade of its air, sea and land links that the nations imposed a month ago

“In normal circumstances, it would be a great change to buy on the dip,” said Nabil Al Rantisi, the managing director of Abu Dhabi-based Mena Corp Financial Services.

“But with all the uncertainty happening with the Qatar situation at the moment, I think investors will stay sceptical” about buying stocks, he said.

The sanctions have prompted Barclays, Lloyds Banking Group and Royal Bank of Scotland to end the sale and buy-back of the Qatari riyal for consumers because of issues with a supplier, they said on Friday without providing details of the third party.

This will maintain pressure on Qatar’s currency for the next few days, Mr Rantisi said. “You don’t know how this is going to keep on escalating in the upcoming few weeks,” he said.