Qatar Shares Rise to One-Month High on MSCI Upgrade Speculation
Qatar’s shares advanced to the highest level in a month on speculation index provider MSCI Inc. will upgrade the Persian Gulf nation to an emerging market in June.
Qatar National Bank SAQ (QNBK), the Persian Gulf country’s biggest bank by assets, jumped 2.4 percent and Qatar Electricity & Water Co. (QEWS), the state-controlled utility, increased the most in almost a month. The QE Index (DSM) advanced for a fourth day, rising 1.2 percent to 8,765.14, the highest since April 14, at the 1:15 p.m. close in Doha. The Bloomberg GCC 200 Index (BGCC200) of regional stocks gained 0.1 percent.
“The rumor mill at work” suggests that “there may soon be an announcement regarding the raising of foreign ownership limits,” said Julian Bruce, equity sales head at EFG-Hermes Holding SAE in Dubai. The assumption is that if the limits are raised it “would remove any remaining barriers for entry into MSCI EM (MXEF),” he said.
Qatar and the United Arab Emirates are seeking to secure an upgrade from frontier markets status at MSCI. Foreign-ownership limits on stocks and “efficiency” are some issues that Qatar and the U.A.E. face, Manuel Rensink, head of Middle East and North Africa at the index provider, said May 3. Size and liquidity are “not a major hurdle for the U.A.E. and Qatar,” he said.
Qatar National Bank rose to 146.9 riyals, the highest since September 2005. Qatar Electricity gained 3.7 percent, the most since April 13, to 147 riyals.
GCC Inclusion
In the U.A.E., Dubai’s DFM General Index (DFMGI) increased 0.1 percent and Abu Dhabi’s ADX General Index (ADSMI) gained 0.2 percent.
Morocco and Jordan may be admitted to the six-member Gulf Cooperation Council, Secretary-General Abdel Latif al-Zayyani said at a news conference in Riyadh yesterday. Turmoil that spread through the Middle East and North Africa, ousting leaders in Egypt and Tunisia, earlier this year have reached Morocco, Jordan and the Gulf states of Oman, Saudi Arabia and Bahrain.
“The GCC willingness to include Jordan and Morocco to the council is also good news from a security perspective,” said Nabil Farhat, partner at Abu Dhabi-based Al Fajer Securities.
Saudi Arabia’s Tadawul All Share Index (SASEIDX) gained 0.1 percent. Bahrain’s measure was little changed, Kuwait’s SE Price Index slipped 0.2 percent and Oman’s MSM30 Index (MSM30) lost 1.1 percent. In Morocco, the MADEX Free Float Index (MOSEMDX) slipped 0.1 percent at 2:03 p.m. in Casablanca, while in the Levant, Jordan’s Amman SE General Index (JOSMGNFF) increased 0.9 percent.
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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