Qatari Stocks World’s Biggest Decliners a Day Before FTSE Change

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Photographer: Karim Jaafar/AFP via Getty Images
  • Technical indicator shows Gulf nation shares might be oversold
  • Stocks to begin trading on FTSE Russell emerging-market index

Qatari shares plunged in their biggest drop since January before the effective inclusion of its stocks in a FTSE Russell emerging-markets measure.

Qatar’s QE Index declined 4 percent, the most among more than 90 gauges tracked by Bloomberg worldwide. The measure fell to the lowest level in two months, sending its 14-day relative strength index into oversold territory for the first time since May.

The gauge was the best performer within the six-nation Gulf Cooperation Council in August, after the London-based global index provider FTSE Russell eased liquidity requirements for Qatari stocks to be added to its developing-nations measure. Shares fell this month as investors cashed in gains ahead of the FTSE inclusion, which takes effect at the start of trading on Tuesday.

“The vast majority of buying has been done, so it remains to be seen if the sellers will stand down now,” said Akber Khan, who manages $850 million as the senior director of asset management at Al Rayan Investment in Doha. “Given the very sharp falls in a number of stocks today, and over the last few trading days, we may see some stocks bouncing from here.”

Real-estate company Ezdan Holding Group was the biggest contributor to the retreat, falling 5.1 percent to its lowest level since June 6. The QE’s daily trading volume was more than four times higher than the its 180-day average, data compiled by Bloomberg shows. The measure’s relative strength index sank to about 26, four points below a threshold that serves as a signal to some analysts that a security may have fallen too quickly.

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