Gulf rift weighs on QSE in 1st anniversary

Mubasher: The Qatar Stock Exchange (QSE) has been suffering over the first year of Qatar’s diplomatic crisis, hitting its lowest level since 2011, which led the bourse to search for more catalysts to get over its losses.

The general index fell 6.2% to 9,310.51 points by end of Tuesday’s session, compared to 9,923.60 on 4 June 2017.

On 5 June 2017, the general index slid 7.72%, or 720.98 points in one session, registering 9.202.62 points.

Since 5 June 2017, Qatar has been facing outflows of foreign customers' deposits after four Arab countries led by Saudi Arabia cut off their diplomatic and trade ties with the gas-rich state, accusing Qatar of financing terrorism. Doha forcefully denies the charges.

Losses

Moreover, market capitalisation retreated 3.4% to QAR 514.4 billion, from QAR 532.5 billion on 4 June 2017.

During the world's top exporter of liquefied natural gas crisis, the bourse witnessed exiting two or three funds affiliated to some Gulf countries.

Catalysts

In order to compensate part of its losses, the Qatari bourse started offering some catalysts in the first year of the Arab ties.

More than 11 Qatari firms out of 45 firms listed on the bourse raised foreign ownership limit to 49% instead of 25%.

The firms included Masraf Al Rayan, Qatar National Bank (QNB), Industries Qatar, Qatar Fuel (Woqod), Gulf International Services, Mesaieed Petrochemical Holding, Qatar Electricity and Water Company, Barwa Real Estate and Qatari Group.

In March 2018, the QSE has welcomed Doha Bank and Amwal’s ‘QETF’ as the first exchange-traded fund in Qatar.

On 21 March, the QSE effectively listed Masraf Al Rayan’s exchange traded fund (ETF), with total assets of $120 million.

The benchmark measures the price performance of Shari’a complaint stocks (as approved by Al Rayan’s Shari’a Supervisory Board).

Rashid Al Mansoori, CEO of QSE, announced that the market witnessed joining more than 100 funds and investment portfolios from different countries across the world.

Expected listings

The QSE studies launching a number of funds, in compliance with Shari’a, with a total amount of $500 million, Al Mansoori said.

On the other hand, three more companies are expected to be listed on the market during 2018, and 35 firms will be listed in the coming five years.

Translated by: Kholoud Mohamed Hussein