Qatar falls for 2nd day, volumes slump

Qatar's benchmark ends lower for a second day as volumes slump to a two-week low. Doha Bank falls 0.2 per cent after reporting a 10 per cent rise in fourth-quarter profit. Other lenders also decline, with Qatar International Islamic Bank dropping 1.1 per cent and Masraf Al Rayan sliding 0.8 per cent. The index falls 0.3 per cent to 6,772 points, with volumes less than a quarter of the 12-month daily average. Qatar has long been a top pick for analysts, but the country's index ended 2009 almost flat and is falling slightly so far this year. The sustained low volumes on the Doha bourse increase the risk for foreign funds because exiting the market is more difficult, while many have rules that prevent them entering a market unless it trades above a minimum turnover. Also, many dedicated Gulf funds are already overweight on Qatar and are therefore unlikely pump in any more money, no matter how tempting the macroeconomic outlook might be, according to analysts.