DOHA: Investors’ wealth on the Qatari equity exchange is down by a massive QR23.9bn ($6.6bn) in the past three trading days, with cement stocks being one of those shares that have shed substantial value in the period.
The downward trend on the Qatar Exchange (QE), surprisingly, began on the day (June 2) it was expected by investors and analysts alike to witness considerable gain since 10 of its 43 listed shares were to be included in the coveted MSCI Emerging Markets Index.
The market capitalization of the QE on June 1 was QR739.81bn ($203.2bn), and it climbed down to QR732.16bn the next day. The decline continued and yesterday, on the third day of continuous decline, the capitalization figure fell to QR715.87bn — a drop of QR23.9bn.
The main index of the bourse has been losing, and yesterday it was 13, 142.69, having shed more than 550 points, or slightly more than four percent, in the past there days, figures show. Cement shares have been on a losing spree since June 1. The stocks were actually ruling at a high of QR150 on May 29, the last day of trading in May.
However, when the market reopened after weekly closure on June 1, the stocks lost a huge 4.6 percent, to QR143.10. The decline continued with the shares eventually falling to QR131.70 at the close of trading yesterday.
Qatar National Cement Company (QNCC) is, though, not part of the 10 most prized shares that are included in the MSCI EM Index. Most of these 10 shares have been losing since June 2. Yesterday, the trading value, volumes and number of transactions all came down as compared to the previous days. The trading value was QR935.99m, while volumes totaled 18.27 million shares.