Qatar eases from high; market looks overbought

Industries Qatar and Qatar Islamic Bank head losers on Doha's index as the latter approaches a key resistance level after rising in 14 of the preceding 15 sessions, but further gains are expected.Industries Qatar falls 1.4 per cent, having added 5.1 per cent on Sunday, its biggest gain since mid-March, while QIB loses 1 percent.

The index falls 0.4 per cent to 7,441 points, slipping from Sunday's 17-week high.The relative strength index (RSI) reached 77 on Sunday. A value above 70 indicates the market is overbought, traders say.Yet Qatar's uptrend should continue in the medium term, says Hani Girgis, assistant chief dealer at Dlala brokerage, although the index will see some profit taking around 7,500 points, with subsequent resistance at 7,800.The benchmark could hit 8,000 by year end if foreigners continue to put cash into the market, Girgis says, predicting third- and fourth-quarter results will support such a move."Some profit taking was expected ahead of the Eid break," adds Girgis.The Qatar bourse is expected to be closed from Sunday to Tuesday next week for Eid al-Fitr, which marks the end of the holy month of Ramadan.