Investor confidence in Qatar was higher than the GCC average in October thanks to the the strength of its macro economy, a survey by Shuaa Capital found.
In its latest GCC Investor Sentiment Report, Shuaa also said the price of crude oil was expected to rise further and that investors were also bullish on gold.
Qatar’s investor confidence index jumped 7.3 points to 143.1, which is higher than the GCC average of 132.2 points, said Shuaa Capital.
“The Qatar Index has consistently been one of the highest Indices in the region and after last month’s dip, Qatar has bounced back by recording its highest ever index of 143.1 this month,” said Oliver Schutzmann, Chief Communications Officer of Shuaa Capital.
Driving Qatar’s gain, according to him, was investors’ opinion of the current state of the country’s economy, which rose by a significant 11.7% on balance to 43.1%.
Although respondents were rather bearish on the current equity market valuations, the survey found that they were bullish on six-month outlook in equity market as well as in the current and six-month economic conditions.
On the GCC Investor Confidence Index, Schutzmann said the continued improvement was largely drive once again by the positive movement in the balance of investors’ perception of current regional economic conditions.
“In October, this figure moved to 27.5% from 15.7% last month and a significant improvement on July’s recording of -15%,” he said.
On the regional stock markets, he said the respondents were asked if they would call a bottom in the various and regional and global bourses.
“They responded favourably towards the GCC markets, in particular Saudi Arabia’s Tadawul which had an on balance figure of 35.3%.
“Also performing well was the Abu Dhabi Stock Exchange, Qatar Exchange and Oman Stock Market, which had on balance figures of 17.6%, 13.7% and 7.8% respectively,” he added.
On the oil price front, Shuaa said it was expected to rise over the next six months, according to the feedback from investors this month.
“Respondents are still more likely to invest in the GCC markets rather than in global emerging markets and BRIC (Brazil, Russia, India and China) countries over the next six months, although to a lesser extent,” the report said.
The forecast for the GCC real estate, construction and materials sector has turned positive for the first time since April, 2009.
“With a massive jump, from -13.7% to 13.7%, of investors expecting a rise in profitability, investor confidence now outweighs investor uncertainty,” it added.
The most promising sector, according to the respondents, was the telecom, media and technology segment, followed by heavy industries, consumer and retail goods, banks and financial institutions, utilities and transport and logistics.