Qatar bourse shoots up on MSCI upgrade… to ‘emerging market’ status

Qatar Exchange (QE) yesterday welcomed the decision of the index compiler Morgan Stanley Capital International (MSCI) to upgrade the Qatari market from “frontier” to “emerging market”, describing it as a “positive step towards the development of QE and a milestone that will attract further foreign investments to the local stock market”.

Qatar Exchange CEO Rashid bin Ali al-Mansoori  expressed satisfaction at the upgrade which, he said, “clearly and evidently reflects the recognition of the positive steps made by QE over the past years to meet the MSCI requirements, in terms of the development of the market infrastructure and the implementation of a number of important projects and initiatives, which were welcomed by the international financial and investment institutions”.

The Qatar Exchange, with a market cap of over QR512bn, is one of the leading stock exchanges in the GCC and Mena regions.

“Since it was established in 1995, Qatar Exchange has made great strides in the development of infrastructure, diversification of investment tools available for trading, and launching of many initiatives that have helped various types of investors to enter the market and invest in a more easily efficient and orderly manner,” al-Mansoori said.

Qatar Exchange has  achieved  great success in complying with the best international practices at various levels, including regulatory issues, operational efficiency and the development of trading and post trading environments.

“This decision comes as a natural result of the efforts pursued by Qatar Exchange and other concerned parties in Qatar’s financial markets industry,”  al-Mansoori said.

“The upgrade of Qatar by MSCI from frontier to emerging market is a very positive step for the development of Qatar Exchange and is likely to draw more international investors into the country’s equity markets, since many are interested to invest in emerging markets.”

The New-York based MSCI Emerging Markets Index allocates classifications according to factors like economic development and bourse trading volumes.

In its 2013 Annual Market Classification Review release, the MSCI praised the improvements made in trading mechanisms in Qatar, as well as the “progress made to date and the further commitment of the Qatari authorities to increase the foreign ownership limit” on shares in Qatari companies.

Doha Securities Market was founded in 1995, and began work in May, 1997. The market entered a new stage after signing the strategic partnership with NYCE EuroNext in June 2009 converting Doha Securities Market to an incorporation under the new name Qatar Exchange.

Currently, Qatar Exchange has 42 listed companies.

Bourses climb after MSCI reclassification

 Qatar and UAE bourses climbed yesterday after index compiler MSCI said it would include the two countries in its emerging markets benchmark. Qatar’s index advanced 1.8% to 9,518 points. The reclassification by MSCI is seen as an important step in developing the Gulf as a destination for equity investment in the long term. Fund managers estimated the upgrades might draw a fresh $500mn each to Qatar and the UAE when they took effect next May. More importantly, they could help to improve many foreign investors’ perception of the Gulf.

Reported by: Caye Global News, Gulf Times

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