Commercial Bank of Qatar (CBQK), the country’s second-biggest lender, was removed from Goldman Sachs Group Inc. (GS)’s “CEEMEA Focus List” citing foreign ownership limits and as the stock outperformed MSCI peers.
“Foreign ownership limits have not been increased for stocks in Qatar contrary to earlier expectations,” Goldman Sachs said in a note to clients dated today. “For CBQ, the classification of free float shares remains the same, leaving limited incremental headroom for foreign investors. This also poses a risk of CBQ’s exclusion from the MSCI FM Index.”
The bank’s shares have “outperformed MSCI EM EMEA by 17.9 percent over the last three months,” it said.
Goldman maintained its “buy” recommendation on the stock with a price estimate 113.98 riyals.
CEEMEA stands for Central Eastern Europe Middle East & Africa.
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