• Global : Going forward we believe that, Qatari market is likely to remain in firm zone.
Global Investment House- Kuwait- – Qatar Stock Market Performance- In 2007, Qatari stock market witnessed strong northward momentum. During 2007, Global DSM Index posted a yearly gain of 40.4% and ended the year at 683.99. The four major sectors in the DSM are banking & financial institutions, insurance, services and industrial. In 2007 all the four sectoral indices ended the year in positive. Global’s industrial sector index gained 73.64% during 2007 and closed at 605.18 points. It was highest gainer in all sectors index. It is to be worth noted that, in 2006, Global Industrial Index recorded the highest drop of 43.7%. Other Global Index also performed well in 2007. During 2007, Global Banking, Insurance and Service index gained 23.6%, 31.7% and 39.9% respectively.
DSM currently has forty two companies listed on the exchange. During 2007, four companies had been listed and in Q1-2008 two more companies got listed on the exchange. The newly listed companies are Al Khalij Commercial Bank in the banking sector; Mannai Corporation, Qatar Oman Investment Company, Aamal Holding Company, Ezdan Real Estate Company and Islamic Financial Securities Company in the services sector.
Among the other major developments for the capital market was implementation of buy-back rule effective from July 4, 2006. The companies listed on the Doha Securities Market can buy back their own listed shares subject to a cap of 10%. At the same time, Qatar Financial Markets Authority was established in 2006 to regulate the securities market. Now Qatar is planning to bring its financial system under single integrated financial regulatory body. To achieve this objective, Qatar is to establish a single integrated financial regulatory body that will oversee all banking, insurance, securities, asset management and other financial services. This new regulator will bring together the staff resources currently dispersed amongst the Qatar Central Bank Department of Banking Supervision and its Banking Consumer services Unit, the Qatar Financial Markets Authority and the QFC Regulatory Authority, thus, creating a single organization and, in due course, one set of high standard rules will be applicable to all financial institutions. With this initiative, Qatar follows an international trend towards an integrated approach to the regulation of different financial services products and activities.
During 2008 also DSM continued its northward journey as at the end of May 2008 Global DSM index showed a YTD gain of 36.5% or 249.67 points to 933.66 points. At the end of May-08, services index outpaced all the sectoral indices on YTD basis and recorded a gain of 59.1% to 761.43. Banking, insurance and industrial sectors increased by 24%, 21.2% and 29.7% respectively in first five months of 2008 over 2007 year end level.
Stock Exchange Indices Performance
DSM Indices 2006 2007 % Change May-end 2008 YTD Change
Global General Qatari Index 487.2 684.0 40.4% 933.7 36.5%
Banking 845.2 1044.7 23.6% 1295.8 24.0%
Insurance 607.3 799.7 31.7% 969.2 21.2%
Industrial 348.5 605.2 73.6% 785.2 29.7%
Services 342.1 478.7 39.9% 761.4 59.1%
Source: Doha Securities Market
In 2007, with rise in market indices, the market capitalization (m-cap) of DSM increased sharply by QR126bn, a steep raise of 56.8% and stood at QR347.7bn. At the end of May 2008, DSM’s m-cap stood at QR495.1bn which shows a jump of 42.4% over 2007 year end level.
Qatari economy is expanding rapidly and growing at robust rate. Going forward, Qatari market is likely to be in the positive territory with many fundamental factors backing up its economy with the sole exception of inflation. If Qatari authorities are able to rein in inflation, it will add luster to recent good performance of the market.
