Tuesday 11 January 2011

UPDATE 1-Qatar fund's stake buy to boost lenders -analysts | Reuters

Qatar's sovereign fund plans to purchase a remaining 10 percent stake of a promised 20 percent stake in the Gulf state's banks to provide support to its local lenders.

The planned purchase by the Qatar Investment Authority (QIA) -- decided during the financial crisis and to take place in the first quarter -- will boost confidence in the sector and lift investor sentiment in the gas-rich Gulf state, analysts said.

"It demonstrates the significant level of support that the Qatar government said it would provide and has provided," said Richard Sykes, head of global markets at Standard Chartered in Qatar. "Clearly, for local banks that are listed, it will bring a boost in market capitalization on the exchange."

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