Qatar’s shares rose a sixth time in seven days on optimism that government spending on infrastructure will boost economic growth after the country won the rights to host the soccer World Cup. Egypt’s benchmark advanced.

Qatar Gas Transport Company Ltd., the liquefied natural gas transporter known as Nakilat, climbed the most in a week and Doha Bank QSC, Qatar’s third-biggest bank, gained as much as 2 percent. The QE Index advanced 0.4 percent to 8,781.29 at 12:01 p.m. in Doha, headed for the highest close since September 2008. The Bloomberg PGCC 200 Index slipped 0.2 percent, while Egypt’s measure increased 0.9 percent.
“Positive sentiment after Qatar won the world cup bid is persisting as volumes improve and international investors return to the market,” said Ahmed A. Hadi, general manager of equity brokerage at Dlala’ Brokerage & Investment Holding Co. in Doha. “The massive infrastructure spending expected in 2011 will boost the country’s economy.”
Qatar, projected by the International Monetary Fund to have the world’s fastest-growing economy this year, plans to more than double the number of hotel rooms, build nine stadiums and refurbish three others as well as construct a rail and metro network for the tournament. Moody’s Investors Service estimates that the country will spend about $57 billion over the next decade for infrastructure developments related to the World Cup.
Qatar’s benchmark index has soared 7.3 percent since the country was awarded the World Cup 2022 on Dec. 2.
------------------World cup spending
About 22 million shares have traded in Qatar so far on Sunday, more than double the 12-month daily average of 8 million.
The country plans to spend $4 billion on the stadium construction and refurbishment program. With summer temperatures approaching 50 degrees Celsius (122 Fahrenheit), each facility will be designed with a solar-powered air-conditioning system. A new 200,000-population city called Lusail, north of the capital, is scheduled to be built over the next decade and will feature the stadium that hosts the World Cup final.
Qatar Gas surged 5.4 percent, the most since Dec. 5, to 21.6 riyals. Doha Bank rose to as much as 62.7 riyals, the highest since September 2008, and last traded at 62 riyals.
Abu Dhabi’s ADX General Index increased 0.2 percent, while Dubai’s benchmark stock index dropped 0.8 percent, the lowest since Dec. 1. Bahrain’s All Share Index dropped 0.1 percent, Kuwait’s gauge slipped 0.3 percent and Oman’s MSM30 Index fell less than 0.1 percent. Saudi Arabia’s Tadawul All Share Index retreated 0.2 percent.
The TA-25 Index rose 0.1 percent to 1,299.49. Israeli bonds fell, with the yield on the benchmark 5 percent Mimshal Shiklit due January 2020 rising 5 basis points to 4.72 percent. It reached 4.73 percent on June 15.
(Source: Bloomberg)