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Qatar’s stock market is scaling new heights helped by strong economic recovery. September was the best month for Qatar’s stock market with QE Index registering its strongest monthly rally in this year.
The QE Index has surged close to 400 points in September, making it the highest monthly gain of 2021.
The benchmark index had closed on the last trading session of August at 11,093 points and it soared to 11,485 points at the end of September, registering a gain of 392 points during the month. A similar surge in the stock market was witnessed a month ago in August also. The index had gained 340 points during August.
The rise in these two months accounts for a major chunk of the total gains in the QE Index in the entire 2021.
The QE Index rose from 10436 points from the beginning of this year to 11,485 points at the end of September, showing a surge of 1,049 points. Of this total increase, the QE Index has gained 732 points during August and September.
The consistent rise in the stock market is being fuelled by global and local factors, say analysts. The rise in Qatar’s stock market is in sync with global stock markets, which have also risen in the last couple of months, helped by significant improvement in economic situation.
Ahmed Akl, Doha based financial analyst
“Qatar’s stock market is moving in tandem with global stock markets, which have surged in the past two months. The world trade is gaining momentum, vaccination rate has increased, airports have re-opened and the restrictions have been eased, which has boosted the optimism among investors,” Ahmed Akl, Doha based financial analyst told The Peninsula.
“Oil prices are also moving up consistently which is a positive factor for Qatar and the Gulf region. Revenues of many companies listed on the local bourse are directly linked to oil prices. When oil prices go up, the revenue of these companies also rise which in turn push up their share prices,” said Akl.
Qatar has seen increased economic activity in the last couple of months due to a drastic fall in COVID-19 cases and high vaccination rate that led to easing of pandemic related restrictions. Several indicators have confirmed the strong economic momentum in the country.
The latest Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre reached all-time record high in September. The PMI rose for the fourth month running to 60.6 in September, from 58.2 in August. The latest figure signalled the strongest overall improvement in operating conditions since the survey began in April 2017, surpassing the previous record high of 59.8 in July 2020. The surge in economic activity has reflected in the results of companies.
“Companies posted robust profits during the half-yearly results helped by improved macro-economic conditions. One of the major factors that helped stock market was increasing Foreign Ownership Limit in Qatari companies. Many QSE listed companies have announced to increase Foreign Ownership Limit that allows non-Qatari investors to own up to 100 percent of the capital. Allowing non-Qataris has attracted investors to the local bourse and it will further attract Foreign Institutional Investors to Qatar,” said Ahmed Akl.
Analysts believe there is more steam left in the stock market rally as the economy is going to get stronger in the coming days.
