Qatar’s benchmark index yesterday rose to the highest level in more than four months as the central bank plans new rules to allow local banks to trade in shares. QNB advanced to the highest since September 2008.
Qatar Islamic Bank climbed the most since December. Qatar’s index QSI advanced 3.8%. The measure closed at the highest since October 27. QSI has gained 7.3% this week. The central bank will soon issue instructions that will allow local banks to trade on the market.
March 18, 2010
Analysis and Forecast: Decreasing Risk
The move by the Qatari central bank is long overdue. However, now that is has happened, it positions Qatar to compete with other GCC stock markets, such as Dubai and Abu Dhabi. Although the details have not yet been made clear, the move is a positive one for Qatar’s economy in general, and in relation to making the Qatari stock market more competitive, as liquidity is expected to increase as a result of this move. The Qatari stock market has responded very positively to the news.
The movements of the index in March 2010 is shown below: