Tuesday 13 August 2013

Upgrade of Qatar, UAE to bring potential benefits | GulfNews.com

Upgrade of Qatar, UAE to bring potential benefits | GulfNews.com:

"The reclassification of Qatar and the UAE has created much excitement, but will take effect officially with the MSCI’s May 2014 semi-annual index review.
Significant potential benefits include an increase in portfolio flows with the entry of foreign institutional investors and passive or index-tracking investors. Many market participants are now anticipating windfall investment flows and research houses have been quick to calculate the expected flows into the UAE and Qatari exchanges. We believe it is premature to quantify the immediate effects due to several variables. However, we are encouraged by longer-term prospects and expected institutionalisation of these markets.
Hopes for the MSCI upgrades and entry of new investors helped boost stocks in Qatar and the UAE, currently among the world’s top performers year-to-date. We believe the long-term implications are even more meaningful. The upgrades could attract additional liquidity, providing policy makers with an ongoing impetus to reform."

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