Qatar stock market flags as economy soars

Despite multiple bank bail-outs, an economy in rude health and glowing analyst recommendations, Qatar’s stock market remains one of the region’s underperformers this year.

MSCI Barra’s Qatar index has gained only 9.5 per cent in 2009, compared to a 26 per cent gain in the MSCI GCC index and a near 60 per cent jump in the MSCI Emerging Markets index. Only Bahrain’s stock market has done worse in the Gulf.

One explanation is that the Qatari stock market fell less than its regional counterparts last year. Over the past 12 months it has shed nearly a fifth of its capitalisation, marginally better than the GCC Index’s 25 per cent drop. The Doha index has climbed further from its trough than most other markets.