Qatar’s equity markets have recovered to within 10% of its pre-embargo levels after plunging 22% at one point.
The financial sector or largely bank stocks were leading the charge Monday, with trading volume on the Qatari stock index almost doubling. QAT also includes a significant 52.7% tilt toward the financial sector, followed by 15.6% industrials and 13.3% real estate. Top holdings include Qatar National Bank 21.2%, Industries Qatar 10.7%, Masraf Al Rayan 10.5%, Ezdan Holding 7.1% and Qatar Insurance 5.2%.
Further supporting Qatar’s market outlook, crude oil prices have been strengthening, with Brent hovering around $67.7 per barrel. The economy seems to be on stable ground even after being subject to an embargo by its neighbors.
“Qatari GDP surprised to the upside in 3Q17, suggesting that the diplomatic dispute had a less severe initial impact on activity than previously feared…. GDP growth rebounded to 1.9 percent year-on-year from 0.3 percent in Q2, despite being the first full quarter of the diplomatic dispute that began in early June,” NBK noted in its latest country report on Qatar.
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