Doha: Financial analyst Ahmed Aql said yesterday he expects the performance of Qatari stocks to improve in the final quarter of 2022, pushed by forecast economic growth of 5.2 percent and fiscal surpluses.
Aql told Qatar News Agency (QNA) said that the recession threat looming over many international economies is nowhere to be found in Qatar, something that should enhance the country’s stock performance, despite the impact of rising interest rates on hot money that leaves financial markets when rates
rise.
He noted that a 4-5 percent rate is a real headwind on equities, as they raise the required return on equities. He said that the market needs attractive profits and dividends, but maintained that this was difficult given many companies will want to reinvest their profits for the long-term.
He also told QNA that the move towards away from equities globally and the rise of cash in brokerage accounts does have an impact on Qatari stocks, given it affects sentiment of equity investors all over the world.
