By: Eman Ghaly
Mubasher: The Qatar Stock Exchange (QSE) has managed to absorb the impacts of the semi-annual review of the MSCI Emerging Market (EM) index revealed late on Tuesday, financial analyst Ahmed Eid told Mubasher.
The review included the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Global Value and Growth Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, among others.
Doha Bank was among the securities that have been deleted from the MSCI Global Large Cap Index and moved to the MSCI Global Small Cap Index replacing Qatar First Bank (QFB) that has been removed.
Eid said that the Qatari bourse may get back to its normal performance starting from Thursday’s trading session.
By the end of Wednesday’s session, the general index went down 115.54 points, or 1.12%, to finish at 10,199.08 points.
Eid attributed the hike in the bourse’s liquidity to trading on bonds and sukuk, as the net liquidity of traded shares hit QAR 270 million, which is a good level.
The QSE’s liquidity surged to QAR 1.5 billion by the end of Wednesday’s trade, compared to QAR 228.4 million on Tuesday.
Moreover, the weight of QFB in the index compiler was not big, hence its removal would not have a considerable impact, the financial analyst said.
He expected the price fluctuation of QFB’s stock to range between QAR 4.25 and QAR 4.50, affirming that the price will not get back to QAR 4.
As for Doha Bank, the stock price will continue to swing between QAR 20 and QAR 21.
On the other hand, MSCI’s decision of not adding Qatar Fuel’s (Woqod) to the index may have an impact on the bourse’s performance, as the stock topped the market’s decliners on Wednesday falling 10% at QAR 173.79, Eid forecast.
Currently, the QSE’s general index targets a resistance level of 10,400 points and it will keep moving towards 10,600 points.
Moreover, QP announced the successful closure of the initial public offering (IPO) of Qatar Aluminium Manufacturing Company’s (QAMCO) shares.
The shares, represented 49% of QAMCO’s issued share capital, were offered at QAR 10.1 per share, which includes the nominal value per share of QAR 10, plus offering and listing costs of QAR 0.1 a share.
The IPO was oversubscribed 2.5 times the amount of shares offered to individual investors, reflecting the market’s high liquidity, the financial analyst noted.
Translated by: Kholoud Mohamed Hussein
