Qatar's stock market plunged yesterday, after bad results for corporate profits in the first half of this year, led by the telecommunications sector, while 10 black scenarios in the Doha economy, after a year and a half of the Arab quadriplegia, faltering because of the intransigence of Qatar, Search for a solution to the crisis outside the Gulf House.
In detail, the telecom sector pressured the Qatar Exchange yesterday, after Oridu Telecom's profit fell in the second quarter of this year.
Shares in Oridu fell 5.4% after the company reported a 60% drop in net profit. The results pushed QEQ down 0.4% and Industries Qatar fell 0.9%.
The value of trading amounted to 18.6 million riyals, with a volume of 686.6 thousand shares, executed during 468 transactions.
Standard & Poor's Global Ratings affirmed its negative outlook for Qatar's rating at AA- / A-1 +.
Standard & Poor's stressed that Qatar's negative outlook is mainly due to geopolitical risks and the potential consequences of diplomatic tensions based on economic and financial conditions.
Qatar has pumped tens of billions of dollars into its economy, seeking to stop its deterioration and end the liquidity crisis in banks.
Doha has put in place a number of new legislation to stop the stock drain and investor dislocation, which has failed to stop the market collapse.
Qatar has set up a new investment package to save the market, including the launch of two investment funds for the first time in its history, and urged listed companies to raise the proportion of foreign ownership in their shares to 49% instead of 25.
This comes at a time when the Qatari economy is facing black scenarios, in light of the volatility of the value of the local currency, which may hasten the return of Doha to the seriousness of its right, and acceptance of the demands of countries advocating the fight against terrorism. As a result of the deteriorating situation in the Qatari economy, a number of credit rating agencies have lowered their assessment of Qatari bonds following the decline in Gulf deposits with Qatari banks.
Since the beginning of the Qatari crisis, the country's stock market has exited huge investment flows; Qatar Central Bank has been forced to withdraw part of its assets to support the banking system and the stock market. In this context, the Al Ain Newsletter confirmed that Doha is facing 10 black scenarios, all of which are more dangerous than others, especially with the Arab countries going to cooperate with the international community to take further measures against the Qatari economy. Strangling its economy more rapidly.
On these scenarios, Al Ain said that the first scenario is the exit of more investments outside the country. Consequently, Doha will abandon more of its assets abroad and then abandon the policy of supporting its currency against the dollar.
The second scenario, according to the portal, is that Qatar can not use part of its domestic or foreign assets to support its state-owned companies, implement the 2022 World Cup projects or keep its currency pegged to the US dollar.
Thirdly, Qatar will not be able to rely on its overseas assets to support its financial position. It is likely that between 45 and 55 per cent of its overseas assets will be exchanged for $ 150-180 billion of its total overseas assets.
Fourthly, Qatar Investment Authority will have to sell its stake in large foreign companies listed on London, Paris and Hamburg stock exchanges with high losses if sold to meet liquidity requirements.
Fifthly, Qatar will have to open up investment to foreigners to buy its $ 105 billion domestic assets, the assets and assets of Qatari real estate investment firm Diar and Qatar Airways.
Sixthly, Qatar will also have to use its reserves to meet its external obligations. Qatar's public debt will accelerate in 2016 to 150% of GDP compared to 111% in 2015.
Seventh, Qatar Central Bank will be forced to inject large foreign exchange liquidity into Qatari banks, as well as the stock market. Eighth, this will reduce the foreign reserves available to Qatar Central Bank, thereby reducing Qatar's fiscal space.
Ninth, Qatar will have to cover the outflow of non-resident customers' deposits from Qatari banks or foreign capital and expose the assets held by Qatar's sovereign wealth fund or reserves to a larger decline in the coming period.
Tenth, Qatar will have to abandon its current policy to support the Qatari riyal against the dollar, especially in view of the increasing rate of exit of foreign investments from Qatar, especially short-term ones, as well as repayment of external debt.
• Since the beginning of the crisis, the Qatari stock market has exited huge investment flows; forcing the Qatar Central Bank to withdraw part of its assets to support the banking system.