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Dubai - Qatar’s stock market has lost about $15bn in market value, or 10%, since the start of a Saudi-led boycott on June 5, with 17 of 19 members on the main QE index declining led by Qatari Investors Group QSC.
The UAE, Saudi Arabia and Egypt accuse Qatar of supporting terrorist groups, a charge that the gas-rich nation denies. Qatar submitted a response on Monday to the group’s 13 demands, which the Saudis said they will study before responding.
“Hopes are up for a resolution,” said Marwan Shurrab, head of high net-worth and retail equities brokerage at Al Ramz Capital in Dubai. A positive diplomatic outcome “could bring strong momentum,” he said.
Qatar’s QE index fell 0.1% to 8 883.83 as of 9:55am in Doha as the crisis enters its second month.
Biggest decliners:
Qatari Investors, down 23% through July 4; one of the companies it owns, Al Khalij Cement, could suffer with a slowdown in the construction sector Aamal, fell 17%; has business in retail, medical, construction and real estate, and fell to the lowest level in 30 months this week Qatar National Bank QPSC, declined 15%; the Middle East’s largest lender by assets, and the biggest weighting in the benchmark; relies heavily on foreign funding, and financial sanctions could cool its credit boom, according to Arqaam Capital Qatar Islamic Bank, dropped 15%; has the highest percentage of deposits from the Gulf Cooperation Council plus Egypt among the main lenders in Qatar, according to Arqaam Capital
Biggest gainers
Qatar Navigation, rose 7.5%; offers marine freight transportation and may be benefiting from increased trade with Iran and Turkey since the boycott started; the only other index gainer was Qatar Gas Transportation.
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