Investors from both the countries have had discussions with Qatar’s bourse in this regard, which according to QSE chief executive Rashid bin Ali al-Mansoori, is a show of strength for the bourse and the overall domestic economy.
“Even amidst this crisis, we received calls from (an) investor in the UK to create an ETF,” he said without naming the entity.
Ever since the QSE was upgraded to emerging market by MSCI, Standard & Poor’s-Dow Jones and FTSE Russell, the bourse has undertaken roadshows across the globe in a bid to attract more foreign investments by highlighting various reforms in the finance sector, including a higher up to 49% foreign ownership limits.
Already the QSE is getting ready to list two ETFs – sponsored by Doha Bank and Masraf Al Rayan – which are expected to make their debut on the bourse in the second half of this year.
Two more companies are slated to be listing with the debut of Investment Holding Group, the first family business in the country to go public through maiden offer, expected to happen soon.
“We are ready when they (two domestic ETFs) are ready,” he said. The ETFs are now working on seed funding.
The Masraf Al Rayan ETF, which will track the 17-stock Al Rayan Islamic index, will be managed by Al Rayan Investment Company, a subsidiary of the bank; while the Doha Bank ETF, which will track the 20-stock Qatar Index, have Amwal and Group Securities as fund manager and liquidity provider respectively.
Doha Bank had said its proposed ETF carries a fee, or expense ratio, of 0.5%, one of the lowest in the emerging markets offerings.
The indicative per unit value of ETFs has been fixed at one-hundredth of the previous day’s close of the respective indices, it is learnt.
The ETFs provide investors with exposure to the index benchmark with a single trade and its pricing would be a function of the indices.
The proposed ETFs offer not only an expanded portfolio but also give investors a “viable” strategy to grow with the market at “considerably” lower costs.
The move to launch ETFs comes in view of an analysis of 300 individual portfolios undertaken by the QSE in which it found that the portfolios underperformed the index.
Stressing that the current economic blockade has not dented the QSE’s attractiveness, al-Mansoori said, “We are still having international interests.”
“There was a request from a Hong Kong investor to work on commodities product,” he added.
Qatar shares rebound on strong buying support
By Santhosh V Perumal
Business Reporter
The Qatar Stock Exchange yesterday rebounded with more than 65% of its traded stocks extending gains, after the siege countries extended the deadline by 48 hours to meet their 13-point demand.
Six of the seven sectors, notably telecom and insurance, witnessed strong buying, which resulted in the 20-stock Qatar Index surge 1.3% to 8,936.52 points as Qatar’s Foreign Minister HE Sheikh Mohamed bin Abdulrahman al-Thani arrived in Kuwait to present the country’s response.
Micro and large cap segments saw stronger buying interests in the market, whose year-to-date losses were contained at 14.37%.
Recovering from initial losses, the market was on a consistent gaining path with strong buying, especially in the last few minutes, thus settling the index 114 points higher against the previous close.
Islamic stocks were seen gaining slower than the main index and other indices in the bourse, where foreign and domestic institutions continued to be net buyers albeit with lesser intensity.
Market capitalisation grew 1.13%, or more than QR5bn, to QR482.51bn as micro, large, mid and small cap scrips gained 1.5%, 1.24%, 0.74% and 0.29% respectively.
Although net selling by non-Qatari and Gulf individuals weakened, there was higher net profit-booking pressure from local retail investors and Gulf institutions.
Trade turnover and volumes were on the decline in the bourse, where banking, realty and telecom sectors together accounted for about 78% of the total volumes.
The Total Return Index rose 1.3% to 14,986.01 points, the All Share Index by 1.05% to 2,541.88 points and the Al Rayan Islamic Index by 0.44% to 3,503.19 points.
The telecom index soared 4.86%, followed by insurance (3.88%), consumer goods (1.27%), banks and financial services (1.09%), industrials (0.21%) and real estate (0.09%); while transport fell 0.71%.
Major gainers included Ooredoo, Gulf International Services, QNB, Qatar Insurance, Commercial Bank, Doha Bank, Masraf Al Rayan, Mesaieed Petrochemical Holding, Qatar Islamic Insurance, Mazaya Qatar, Barwa, United Development Company, Woqod, Qatari German Company for Medical Devices and Medicare Group. Gulf Warehousing, Ezdan, Qatar Electricity and Water, Qatari Investors Group and QIIB were among the losers.
Non-Qatari retail investors’ net profit-booking weakened substantially to QR6.69mn compared to QR25.73mn on Sunday.
The GCC (Gulf Cooperation Council) individuals’ net selling fell considerably to QR7.01mn against QR27.73mn on July 2.
However, local retail investors’ net profit-booking increased to QR49.01mn compared to QR41.6mn the previous day.
The GCC institutions’ net selling increased marginally to QR16.72mn against QR15.75mn on Sunday.
Domestic institutions’ net buying weakened significantly to QR29.42mn against QR41.01mn on July 2.
Non-Qatari institutions’ net buying fell perceptibly to QR49.97mn compared to QR69.84mn the previous day.
Total trade volumes fell 31% to 9.83mn shares and value by 26% to QR290.71mn, while deals rose 6% to 4,388.
There was a 43% plunge in the real estate sector’s trade volume to 2.12mn equities and 30% in value to QR38.88mn but on a 43% increase in transactions to 827.
The banks and financial services sector’s trade volume plummeted 41% to 3.84mn stocks, value by 38% to QR124.02mn and deals by 12% to 1,566.
The consumer goods sector reported a 33% shrinkage in trade volume to 0.33mn shares, 25% in value to QR19.84mn and 24% in transactions to 313.
The industrials sector’s trade volume tanked 18% to 0.76mn equities, value by 25% to QR42.88mn and deals by 10% to 621.
The market witnessed a 2% fall in the telecom sector’s trade volume to 1.7mn stocks but on a 24% rise in value to QR24.28mn and 10% in transactions to 326.
However, the transport sector’s trade volume expanded 17% to 0.7mn shares and value by 20% to QR16.47mn on more-than-doubled deals to 555.
The insurance sector saw a 9% increase in trade volume to 0.36mn equities, 23% in value to QR24.33mn 89% in transactions to 180.
