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Satyendra Pathak
Doha
Qatar Aluminium Manufacturing Company (Qamco), which listed as the 46th company on Qatar Stock Exchange (QSE) on Sunday, is likely to be fast-tracked into the FTSE EM Index effective after close of business for the trading week on Thursday, QNB Financial Services (QNBFS) has said in a report on Monday.
Index compiler FTSE Russel had said earlier in December that if Qamco shares met a given threshold at the end of their first day of trading, it would include them into its emerging markets index following a scheduled review, with trading in the updated index due to begin on December 24.
One of the current thresholds for FTSE Middle East & Africa shares to be fast-tracked into the index is for the stock to have a market capitalisation of at least $1.54 billion, which Qamco exceeded at the end of its first day’s trading, data from the Qatar’s stock exchange showed.
Qamco was the most-traded stock on the QSE both on Sunday and Monday, grabbing 65 percent of the exchange’s traded volume on Monday and almost 78 percent of the traded volume on Sunday.
After rising a whopping 30 percent on its debut day, share price of Qamco dropped 4.69 percent on Monday.
“The surge on the first day was less about fundamentals and more about the triumph of pre-IPO hype. That said, the fast-track entry to FTSE EM will bring in significant passive buying this Thursday,” Akber Khan, senior director of asset management at Al Rayan Investment, said.
“While closing up 30 percent, Qamco accounted for an eye-opening two-thirds of the QSE’s value traded on Sunday, underlining the success of this listing,” Khan told Qatar Tribune.
On its debut day, the stock closed at QR13.01 after reaching an intraday-high of QR18.9. It, however, closed at QR12.4 on Monday.
Qatar’s stock market index closed mainly flat on Monday, while the index was boosted by the jump in Qamco’s shares on Sunday to close more than 40 points higher.
“Qamco’s debut on the exchange definitely drove the index higher in its first trading day, as the stock was up 30 percent, and dominated trading activity in terms of both of traded volumes and value traded,” Faisal Hasan, chief business development officer at Kamco Investment Company, has been quoted as saying by a news agency.
“Next triggers for the stock will definitely be higher foreign investor participation and inclusion into the list of index compilers such as FTSE,” he said.
According to QNBFS, better than expected dividends to be announced by Qamco could drive the stock price further, he said.
Another important catalyst for Qamco would be the announcement of a sizable capacity expansion project at Qatalum, it said.
“Such an expansion might affect Qatalum’s and thereby Qamco’s dividend yield. On the other hand, it will convert Qamco into a growth stock, hence adding a growth premium to Qamco’s share price,” QNBFS said in the report.
Qatar’s stock market has emerged as the the best-performing GCC market since the start of the year, gaining over 23 percent.
Doha
Qatar Aluminium Manufacturing Company (Qamco), which listed as the 46th company on Qatar Stock Exchange (QSE) on Sunday, is likely to be fast-tracked into the FTSE EM Index effective after close of business for the trading week on Thursday, QNB Financial Services (QNBFS) has said in a report on Monday.
Index compiler FTSE Russel had said earlier in December that if Qamco shares met a given threshold at the end of their first day of trading, it would include them into its emerging markets index following a scheduled review, with trading in the updated index due to begin on December 24.
One of the current thresholds for FTSE Middle East & Africa shares to be fast-tracked into the index is for the stock to have a market capitalisation of at least $1.54 billion, which Qamco exceeded at the end of its first day’s trading, data from the Qatar’s stock exchange showed.
Qamco was the most-traded stock on the QSE both on Sunday and Monday, grabbing 65 percent of the exchange’s traded volume on Monday and almost 78 percent of the traded volume on Sunday.
After rising a whopping 30 percent on its debut day, share price of Qamco dropped 4.69 percent on Monday.
“The surge on the first day was less about fundamentals and more about the triumph of pre-IPO hype. That said, the fast-track entry to FTSE EM will bring in significant passive buying this Thursday,” Akber Khan, senior director of asset management at Al Rayan Investment, said.
“While closing up 30 percent, Qamco accounted for an eye-opening two-thirds of the QSE’s value traded on Sunday, underlining the success of this listing,” Khan told Qatar Tribune.
On its debut day, the stock closed at QR13.01 after reaching an intraday-high of QR18.9. It, however, closed at QR12.4 on Monday.
Qatar’s stock market index closed mainly flat on Monday, while the index was boosted by the jump in Qamco’s shares on Sunday to close more than 40 points higher.
“Qamco’s debut on the exchange definitely drove the index higher in its first trading day, as the stock was up 30 percent, and dominated trading activity in terms of both of traded volumes and value traded,” Faisal Hasan, chief business development officer at Kamco Investment Company, has been quoted as saying by a news agency.
“Next triggers for the stock will definitely be higher foreign investor participation and inclusion into the list of index compilers such as FTSE,” he said.
According to QNBFS, better than expected dividends to be announced by Qamco could drive the stock price further, he said.
Another important catalyst for Qamco would be the announcement of a sizable capacity expansion project at Qatalum, it said.
“Such an expansion might affect Qatalum’s and thereby Qamco’s dividend yield. On the other hand, it will convert Qamco into a growth stock, hence adding a growth premium to Qamco’s share price,” QNBFS said in the report.
Qatar’s stock market has emerged as the the best-performing GCC market since the start of the year, gaining over 23 percent.
