MSCI inclusion of 3 QSE companies to boost liquidity, fund inflows: Al-Mansoori
May 15 2019 09:16 PM
Al-Mansoori: Opening the door to global portfolios.
Al-Mansoori: Opening the door to global portfolios.


The Qatar Stock Exchange (QSE) on Wednesday said global index compiler MSCI's decision to include three listed companies in its indices will not only enhance liquidity in the market but also open the door to global portfolios.

In its recent review, which will take effect on May 28, MSCI added Woqod, Mesaieed Petrochemical Holding Company (MPHC) and Qatar Aluminium Manufacturing Company (Qamco).

MSCI, considered one of the leading providers of international equity indices, deleted Ezdan Holding from its indices.

MPHC and Woqod have found place in MSCI EM (emerging market) Index and the newly listed Qamco has been included in the MSCI EM small cap segment

QSE chief executive Rashid bin Ali al-Mansoori described this announcement as a "positive" step and said "we are proud of the performance of Qatari listed companies as evidenced by the inclusion of various Qatari companies in the MSCI EM Index."

This development, according to him, would enhance liquidity in the market and contribute to the flow of medium-and long-term foreign investments.

Qatar is one of the 24 countries classified as an EM by MSCI. In the MSCI EM classification, there are three segments: large, mid and small-cap companies. The first two are defined as standard segment as captured by the MSCI EM Index that covers approximately 85% of the free float-adjusted market capitalisation in each of the 24 countries.

"This development (MSCI inclusion of three companies) will open the door to the flow of investments of global portfolios to invest in the shares of Qatari companies, especially in view of the fact that these foreign investment portfolios seek to invest in the Qatari market, which is characterised for being a safe and stable investment environment," al-Mansoori said.

QSE companies currently included in this index are QNB, Industries Qatar, Qatar Islamic Bank, Masraf Al Rayan, Ooredoo, Qatar Electricity and Water, Commercial Bank, Barwa and Qatar Insurance.

The current QSE companies included in the MSCI EM small-cap index are Gulf International Services, Gulf Warehousing, Medicare Group, Al Meera, Mazaya Qatar, Qatar First Bank, Qatar Industrial Manufacturing, Qatar National Cement, United Development Company and Vodafone Qatar.

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