Qatari stocks are likely to see further gains after the gas-rich nation said it had made progress towards ending a rift that has disrupted commercial ties and complicated business in the Persian Gulf for more than three years.
The country’s benchmark QE Index rose 1.5% on Sunday to close at its highest level since January after Saudi Arabia and Qatar moved closer to a preliminary rapprochement. Riyadh had severed diplomatic and trade ties with Doha in June 2017.
“With the rift looking to be ending soon, the biggest beneficiary should be Qatar Stock Exchange,” said Talal Samhouri, senior portfolio manager at Doha-based Aventicum Capital Management Qatar LLC. Shares in Qatar trade at cheaper valuations than those in Riyadh, making them more appealing, he said.
The long-running spat disrupted trade and travel in the world’s top oil-producing region, and forced airlines to reroute traffic. The QE Index slumped 18% in 2017 -- its biggest annual decline since the global financial crisis -- and has underperformed Saudi Arabai’s main Tadawul Index over the past three-and-a half years.
No comments:
Post a Comment