DOHA: Investors on the bullish Qatari bourse have become richer by over QR172bn ($47.23bn) in less than 11 months this year.
Their wealth, measured in terms of collective market capitalisation of all 43 listed companies on Qatar Exchange, stood at QR727.68bn (about $200bn) at the close of trading late on November 27.
The market cap was a little over QR555.6bn ($152.57bn) on the last day of trading of 2013 (December 31), Qatar Exchange figures show.
The main benchmark index of the bourse was 10,379.53 as on December 31 last year.
By November 27 this year, in a few days less than 11 months, the index got a push of a 28 percent, soaring to 13,331.
This is despite the fact that of late the bourse has been witnessing some correction.
The index fell 1.39 percent (or by 187 points) on November 27, for example.
The rally seen by The Qatari bourse so far in 2014 is attributed by some analysts to the twin factors of the listing of large-cap Messaieed Petrochemical Holding Company (MPHC) and the bourse having been conferred the coveted Emerging Market status by MSCI.
“Large investor funds have flown into the Qatari market, indicating growing investor confidence,” an analyst said, asking not to be identified.
He said the confidence basically emanates from the strength of the Qatari economy which stands on solid grounds.
There has been significant rise in trading volumes since Qatar Exchange got the Emerging Market status in the middle of this year, the analyst added.
Figures show that on the last trading day of 2013 (December 31), trading volume on Qatar Exchange was slightly more than 7.21 million shares.
The volume was more than double on November 27, a Thursday, standing at over 14.68 million shares, despite the fact that trading was subdued.
According to the analyst, more foreign investors have been flocking to the Qatari equity market after its new status.
Also, GCC citizens having been put on a par with their Qatari counterparts in terms of privileges they enjoy in share trading, is bringing more and more GCC nationals to the Qatari bourse for investment, said the analyst.
“Among Qatari nationals and their counterparts in the rest of the GCC region, the culture of share trading as an investment tool has been spreading faster.
“One can partly attribute the buoyancy of the local market to this factor as well,” according to the analyst.
The Peninsula
