12 Jul 2017 – 1:32
Qatar Stock Exchange (QSE) has proved its ability to counter the repercussions of the current blockade and highlighted the investment attractiveness of the Qatari bourse based on strong macro and micro economic fundamentals of the economy, said a top official of QSE.
Rashid bin Ali Al Mansoori (pictured), CEO of QSE, in an interview with Qatar Television, described QSE as the largest Emerging Market in the region and the second largest market in the GCC in terms of market capitalisation. Al Mansoori said that since the attempts to impose the blockade, some Saudi and Emirati portfolios have tried to distract the market in the first two days of the crisis by offering large quantities of shares for sale.
However, these attempts have failed and the market has corrected itself since local investors as well as American and British portfolios have entered the market with a buy and consequentially the average daily trading value has increased from QR250m to QR450m per day.
He added that QSE has currently received more than 140 investor applications from new foreign investment portfolios wishing to enter the QSE and that the market has also witnessed great interest from Qatari investors and businessmen who entered the market to buy during the crisis.
In response to a question on the size of the GCC portfolios investing in the Qatari market, Al Mansoori pointed out that the size of the portfolios belonging to the blockade countries does not exceed QR6bn compared to the large market capitalisation of QSE exceeding QR500bn. He pointed out that QSE is the only market in which GCC nationals enjoy the same privileges enjoyed by Qatari citizens under the directives of the Emir, H H Sheikh Tamim bin Hamad Al Thani.
In response to a question about the impact of the GCC portfolios exiting the market, Al Mansoori said that the QSE is open to all GCC investors wishing to enjoy investment privileges based on the strong fundamentals of the Qatar economy, the robustness of the listed companies and the high rates of dividends.
However, the exit of these portfolios would not have any significant impact on the Qatari market, given their small percentage of the market and the readiness of other local and international portfolios to enter the market in a bullish trend considering the buying opportunities.
In the light of the blockade, we do not need any counter actions. We are well prepared and enjoying advanced infrastructure, fair and orderly market, healthy IR and transparency practices, and robust regulatory framework.
Source : The Peninsula