Mubasher: Qatar’s stocks are set to begin 2018 trades at their cheapest prices since 2010 compared to other emerging-market peers, analysts said on Sunday.
Some Qatari shares are now trading at attractive levels on the back of the downward trajectory after four Arab nations led by Saud Arabia cut their ties with Doha in June this year, Bloomberg reported.
The Qatar Stock Exchange’s (QSE) general index had seen the world's second-biggest loss among major indexes, but losses have since shrunk, particularly over the past two weeks, to 17% since the beginning of 2017.
Qatar’s shares are trading at “extremely attractive valuations” compared to other major benchmarks such as MSCI and FTSE emerging markets, portfolio manager at Doha-based Amwal LLC Rami Jamal told Bloomberg.
“Investors will position their portfolios favouring companies with higher dividend yields and diversified growth potential,” Jamal added.
The hike of global oil prices will give the Qatari bourse a shot in the arm, in addition to introduction of new investment funds to the market would in return lure more investors and foreign companies, Jamal noted.
Third-quarter profits demonstrated that lenders operating in Qatar are “broadly resilient,” with funding costs under control in spite of the outflow of foreign deposits and credit growth superior relative to the regional peers, said vice president for research at Dubai's Shuaa Capital Aarthi Chandrasekaran.
In 2018, the Qatari government will maintain its support to the banks, Chandrasekaran added.
