Thursday 11, May 2017 by Georgina Enzer

Qatar Stock Exchange completes successful New York Investor Forum

Qatar Stock Exchange (QSE), in collaboration with QNB Financial Services and HSBC, has completed a two day roadshow that aimed to support the further development and practise of QSE’s listed companies’ investor relations. 

The forum is designed to complement the companies’ ongoing investor relations activities through providing an opportunity for the senior management of listed companies to meet key decision makers from a number of the world’s largest international fund managers.

Whilst emerging market exchanges like Qatar have grown in importance over recent years, this growth has not always been associated with a commensurate growth in liquidity. Qatar Stock Exchange places great emphasis on the importance of market liquidity and its relationship to financial market development given its links to investors, for whom more liquid markets mean lower costs of trading, an ability to move more easily in and out of the market, lower price volatility, and ultimately improved price formation. 

Over the two days through a combination of one-to-one and group meetings the listed companies met with over [fifty-five] fund managers representing [forty] major institutions. Those institutions represented the most important funds allocating money to Qatar, the GCC and the broader emerging markets.  In aggregate the event hosted over [one hundred and thirty] meetings.

 “We are pleased to once again be working with HSBC and QNBFS in showcasing some of our leading companies. We believe developing a diversified investor base, including retail investors, domestic institutions and a range of international institutional investors with different investment horizons and perspectives, is central to the development of our equity markets and hence our ongoing commitment to events such as these. Whilst liquidity in the secondary markets is a clear objective in terms of capital allocation objective we are also mindful of the Exchange’s position as a key to capital formation. Issuers are attracted to more liquid markets, since liquid markets reduce the cost of capital and lead to more accurate share price valuations. Qatar Stock Exchange thus value the increased attractiveness to issuers and investors, as this has a direct link increased confidence in the market overall and brings benefits to the whole economy. Economies in broad terms benefit, because in part companies are able to access capital at a reasonable cost, subsequently increasing investment in their business and driving increased employment and their overall contribution to the economy. We also acknowledge the commitment of our companies in attending such events as their investor relations’ efforts complement the work being done at a more macro-level in continuing to improve market infrastructure. Our inclusion in the various emerging markets indices continues to promote new inflows and the work Qatar is doing in terms of margin trading and liquidity provision (already available) and market-making, securities lending and borrowing and covered short selling will all assist in growing liquidity for all investors including the international investors we have met in the last few days,” Rashid Bin Ali Al-Mansoori, CEO of Qatar Stock Exchange said. 

Eleven listed corporates, representing blue-chip investment opportunities in the Qatari market used the opportunity to meet with the world’s leading fund managers. The Qatari companies participating were: Qatar National Bank, Doha Bank, Commercial Bank, Masraf Al Rayan, Ooredoo, Industries Qatar, Mesaieed Petrochemical Company, Qatar Islamic Bank, Qatar Electricity & Water, Nakilat and Milaha.

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