The Gulf reconciliation is not the only one that contributed to the Qatar Stock Exchange reaching its highest level during the past four years. Rather, there were many incentives that led to this result.
Last Monday, the general index reached its highest level in 4 years at 10,800 points, before continuing its climb.
Despite the positive results achieved by the Gulf reconciliation on all regional markets, the Qatar Stock Exchange had other reasons for the rise, the most important of which is the possible merger agreement between Masraf Al Rayan and the Gulf Commercial Bank (Gulf) and the new state budget that reflects the continued implementation of ongoing projects, supported by generous government spending, in addition to an increase Oil prices reach levels around $ 50 a barrel.
The general index of the Qatar Stock Exchange closed on Thursday, up 0.43%, to reach 10,913.83 points, while the market capitalization at the end of the trading session exceeded 628 billion and 214 million riyals, compared to the last trading session that amounted to more than 627 billion and 386 million.
Not only were these reasons, but the shares of QLM Life and Health Insurance (QLM) were listed as of January 13, after completing all the necessary technical and administrative procedures, bringing the number of companies listed on the stock exchange to 48 joint-stock companies. This increased the appetite for foreign investment flows coming to the Stock Exchange in light of the Qatari economy enjoying strong fundamentals and the desire of foreign asset managers to invest in markets whose economies are stable.
Akl: Gulf reconciliation is one of the most important reasons for the rise of the Qatari stock exchange (Al-Jazeera)
On December 10, QLM Life and Health Insurance launched 60% of its shares for public subscription (initial public offering) in preparation for listing its shares on the stock exchange at an offering price of 3.15 riyals per share, and a total value of the offering of 659.4. One million riyals after deducting the offering expenses of 0.01 riyals per share.
The Gulf Reconciliation
Financial analyst Ahmed Aql believes - in an interview with Al Jazeera Net - that the most important reasons that led to the Qatar Stock Exchange reaching its highest level in 4 years are the geopolitical development represented by the Gulf reconciliation and its positive developments on the region's markets, in addition to the fact that global markets have achieved during the last period numbers. Record, which contributed to moving the local market, in addition to the announcement of the availability of the Corona vaccine and the start of the vaccination process in the country.
Oil momentum
Akl adds that the arrival of the price of a barrel of oil to $ 56 in recent days, and its return to rise again, contributed to giving momentum to the markets that export raw materials, including Qatar, in addition to the imminent disclosure of the financial data of the companies also had a role in the big boom that The Qatari market is currently witnessing.
Al-Samhouri: The banking and petrochemical sectors will lead the Qatari stock exchange to rise this year (Al-Jazeera)
Akl explained that the Qatari market was able to withstand during the year 2020 and the changes and great challenges it brought on, foremost of which was the emergence of the Corona virus and its impact on the global economy as a whole, stressing that the Qatari stock exchange achieved a slight increase of about 10 points during 2020, and 4 companies (Ezdan Holding, United Development, Masraf Al Rayan, Qatar National Bank) attracted more than 30 billion riyals ($ 8.24 billion), which represents about 28% of the annual turnover.
Economic analyst Talal Al Samhouri agreed with Aql about the reasons that led to the stock exchange reaching such record levels.
Positive outlook
Al-Samhouri expected - in an interview with Al-Jazeera Net - that the shares of the Qatari market would rise between 7 and 10% during the year 2021, supported by all the positive factors that will all benefit the stock market, but he indicated the possibility of some fluctuation during the year, but in general the direction of the market will eventually be upward .
Abu Halika expects that the general index of the Qatar Stock Exchange will continue to rise during the coming period to reach the level of 11 thousand points (Al-Jazeera)
Two sectors are driving the market
Regarding the sectors that are expected to lead the market to rise during the current year, Al-Samhouri said that they are the banking and petrochemical sectors, stressing that the Qatar Stock Exchange's preservation of its cohesion during the year 2020 and the major economic transformations it has witnessed indicates the strength of the stock exchange and its resistance to any shocks that may occur in the economic situation. Global.
For his part, investor Youssef Abu Halika expected that the general index of the Qatar Stock Exchange will continue to rise during the coming period to reach the level of 11 thousand points, indicating the great positive impact of the Gulf reconciliation on the market and on the rest of the Gulf and Middle East markets.
He also said that the market will witness a strong injection of liquidity by foreign and Gulf capital, especially after the return of the bond between the brothers and the strong sense of reassurance, which is what the investor needs to enter any market.
Abu Halika concluded his remarks that the current conditions predict that the market is heading towards a great rise and strong cash flows from all local and foreign investors, and the continuation of (this case) will enhance the active movement in the trading room and an unprecedented boom in trading values and volumes.