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Doha - FTSE Russell has published an indicative list of Qatari stocks which will be eligible for addition to FTSE's Secondary Emerging Market Index, in conjunction with the September 2016 Review.
FTSE Russell client products, scheduled to be released on August 31, 2016 will confirm the final list of Qatari additions, it announced on Thursday.
The Qatari companies eligible for the FTSE Secondary Emerging Market Index are:: Aamal , Al Meera Consumer Goods Company, Barwa Real Estate,Commercial Bank of Qatar , Doha Bank, Ezdan Holding Group, Industries Qatar ,Masraf Al Rayan ,Medicare Group ,Ooredoo ,Qatar Electricity & Water Co ,Qatar Gas Transport ,Qatar Insurance ,Qatar International Islamic Bank ,Qatar Islamic Bank , Qatar National Bank, Qatar Navigation, Qatari Investors Group, Salam International Investment Ltd, United Development Company and Vodafone Qatar.
The changes to the FTSE Secondary Emerging Market index will be effective from September 20, 2016.
Qatar's stocks in recent weeks outperformed other GCC markets by around 8-10 percent, particularly the Saudi market which actually declined by 5 percent during the same period.
"Qatar's performance was largely because of the expectation of new foreign fund buying on the back of FTSE increasing Qatar's weight in its emerging market indices. Also fundamentally, due to a better government budget position, Qatar is viewed as a safer bet in the region. That said, in the last week stocks started selling off indicating the speculative buying may be over however. While previous stock valuations were below other GCC markets like UAE, I think now valuations have caught up. The key for continued stock future performance is higher oil prices of at least around 55-60", a Doha-based fund manager told The Peninsula yesterday.
© The Peninsula 2016
