By: Eman Ghaly
Mubasher: The Qatar Stock Exchange (QSE) is one of the world’s best performers this year, as the general index hiked 19.1% during the ten-month period between January and October reaching 10,152.62 points, supported by six main factors including initial public offerings (IPOs) and corporate actions.
The Qatari bourse’s market value levelled up 20.8% to QAR 570.38 billion ($158.08 billion) in 2018, compared to QAR 472.02 billion ($130.82 billion) in 2017.
Foreign ownership
The Qatari stock market urged listed companies to increase their non-Qatari share ownership to 49% instead of 25% in a bid to enhance foreign investment in the market.
The decision has been part of the market’s plan to get over its losses across 2017, as the bourse’s performance was the worst since 2008 affected by the Arab rift.
Since 5 June 2017, Qatar has been facing outflows of foreign customers' deposits after four Arab countries led by Saudi Arabia cut their diplomatic and trade ties with the gas-rich state, accusing Qatar of financing terrorism. Doha forcefully denies the charges.
In March, Qatar Petroleum (QP) raised non-Qatari ownership to 49% in its subsidiaries, in addition to increasing individuals’ ownership to 2%.
Qatar Central Securities Depository (QCSD) affirmed raising foreign ownership in 12 listed companies including the heavyweight Qatar National Bank, Barwa Real Estate, Qatar Islamic Bank, Industries Qatar, and Gulf International Services.
The decision comes in accordance with the provisions of Law No. 9 of 2014.
Attractive prices
Although listed companies’ stocks witnessed an increase in profits this year, the QSE’s stock prices were not positively affected, financial analyst at Namaa Economic Consultancy Ahmed Maher told Mubasher.
The bourse’s performance was the worst in 2017 since 2008 due to the geopolitical situation, which led to a drop in the prices of local stocks making them attractive for investors, Maher added.
It is worth noting that inflows of foreign portfolios reached QAR 7 billion since the beginning of 2018 up to date.
IPOs
QP announced that that it would offer Qatar Aluminium Limited’s (Qatalum) shares for an initial public offering (IPO) on 30 October.
The floated shares represent 49% of the issued share capital of Qatalum. The shares will be offered at QAR 10.1, which includes the nominal value per share of QAR 10, plus offering and listing costs of QAR 0.1 a share.
On 10 September, Rashid Al Mansoori, CEO of QSE, said that around four companies are almost ready to be listed on the QSE.
These companies comprise Qatar Aluminium, Qatar Pharma Factory, and Rayyan Water, in addition to a mega real estate company.
Corporate Actions
Qatar Financial Markets Authority (QFMA) announced that it is looking to set new procedures concerning splitting the nominal value of the listed companies’ shares.
Generous returns
Cash dividends of 21 listed firms on the QSE rose 9.7% year-on-year to QAR 21 billion during the first nine months of 2018, which positively affects investors’ tendency, according to a recent survey conducted by Mubasher.
Listing new funds
In March, the QFMA has approved listing a slew of funds, topped by a fresh $500 million sharia-compliant fund.
The QSE listed Masraf Al Rayan’s exchange-traded fund (ETF) on Monday, 14 March.
The fund’s total capital will range between QAR 400 million and QAR 500 million, in line with offering more products and investment instruments to attract further capital and liquidity to enhance the QSE’s performance.
Translated by: Kholoud Mohamed Hussein
