Stocks in Doha are set to finish the year at the most expensive level in nearly 16 months, a sharp contrast to a slump in valuation for peers in emerging markets in 2018, as eased limits on foreign ownership of a number of Qatar stocks sparked brisk investment inflows into the country’s equities.
The estimated price-to-earnings in the next 12 months for the QE Index has climbed to over 13 times, making it 15% more expensive than it was at the end of last year. The increase compares to a drop in valuation of 16% for the MSCI Emerging Markets Index, which has slumped throughout the year and is now trading at 10 times estimated price-to-earnings.
Overseas institutional investors were net buyers of about $2.4bn in equities in Doha this year after several large caps announced easing limits on foreign ownership. That helped an increase in weight in major equity benchmarks and lured investors at a time the country endures a blockade by a group of neighbours.
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