MSCI index may push trading volume at QE

May 30, 2014 - 2:49:32 am

DOHA: The Qatari bourse expects a huge surge in trading value and volumes once the market is included in the MSCI Emerging Market Index on June 2.

But international wire agency Reuters said yesterday surges in the UAE and Qatari markets may not necessarily continue.

In a statement, Qatar Exchange (QE) said it was gearing up to handle huge trading volumes, adding that it witnessed an exceptional trading session yesterday to mark the inclusion of the market in the index and test its ability to handle increasing trading value and volumes.

Trading value yesterday reached a historic QR4.58bn ($1.3bn) across 22,170 deals, with the volume soaring to 76.11m shares.

Never before in QE’s history had the trading value and volume reached so much, the statement said. 

The last time trading value reached at an all-time high of QR2.35bn was on June 9, 2008.

That was almost half the trading value witnessed in yesterday’s trading. 

The index of the market rose to 13,694.19 — also a record.

Rashid Al Mansoori, CEO, QE, said in the statement that it was a memorable day for Qatar and its stock exchange and all market participants.

“It is the beginning of a new era for our marketplace,” he said, as data showed most buys were by foreign institutional investors.

Their volumes reached 45m shares, with the trading value hitting QR3.09bn. Local institutions booked profits.

Reuters said it is mostly passive funds that were buying stocks in Qatar and the UAE that are to be included in the index.

The Peninsula