Qatar bourse to introduce short selling soon

20/08/2017 05:56 AST

Qatar Stock Exchange (QSE) CEO Rashid bin Ali Al Mansoori has said the bourse is currently working on a series of reforms, including the introduction of short selling, to help further boost the market liquidity.

Qatar stock market is open for GCC and foreign investors and will soon introduce new products. The proposed new rules are set to improve the governance and the market transparency. The regulator’s decision to change the tick size of stocks will have positive impact on certain stocks, he said.

The QSE chief was speaking at a knowledge sharing session on “Qatar – Land of opportunities” hosted by Doha Bank.

QSE’s plans to introduce short selling, first reported by Bloomberg TV in February 2017, is aimed at deepen the market and attract more foreign investors. The QSE’s efforts to introduce regulated short selling follow similar plans unveiled by bourses in Abu Dhabi, Dubai and Saudi Arabia.

Short selling is the sale of a security that the seller has borrowed. Short selling is motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit. Most short selling is done by hedge funds and institutional investors to cushion their positions against falling stock prices or to bet tha shares have risen too high. “We also focus on the SME sector. ETF will also be an interesting opportunity. We are working on simplifying the process for investors”, he said.

H E Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank (QCB); Sheikh Abdul Rehman bin Mohammad bin Jabor Al Thani, Managing Director, Doha Bank; Yousuf Mohamed Al Jaida, CEO, Qatar Financial Centre Authority; and Abdul Aziz bin Nasser Al Khalifa, CEO, Qatar Development Bank (QDB) attended the event.

Addressing the event Yousuf Mohamed Al Jaida said “Qatar, the world’s top LNG exporter is one of the highest rated countries in the Middle East. Qatar is emerging stronger than ever by proving its self-sufficiency, entering new markets and pushing ahead with its diversification strategy.”

Delivering the key note address Dr. R.Seetharaman, CEO, Doha Bank underscored Qatar’s ability to survive the ongoing blockade imposed on Qatar by the Saudi-led quartet. He stated “Qatar has a reserve of $340bn including assets of its Sovereign Wealth Fund, QCB reserves cash and Gold. Together Qatar’s reserves stand more than 200 percent of its GDP. Qatar Banking Asset growth was close to 3 percent YTD till June 2017. The Overall Lending growth was close to 4 percnet YTD till June 2017.”

The Doha Bank CEO said Qatar banks’ deposit growth was close to 6 percent YTD till June 2017. Qatar’s Net trade surplus for Jun’17 was $3.45bn.

He also moderated a panel session with the eminent speakers with discussions pertaining to foreign investors, capital market developments, regulatory reforms, Qatar food Security and SME sector.

Abdul Aziz bin Nasser Al Khalifa noted the major challenges being faced by SME sector include access to information, funding and for procurement opportunities. QDB is working on the challenges faced by SME sector and to translate them into opportunities.

He also highlighted on the business procurement done in recent years for SME sector. The blockade is giving opportunities on the international front as well apart from the local segment. These developments reveal that Qatar is serious for business and business is as usual. He also highlighted the benefits from home-farming initiative.

The Peninsula