TNN & QNA
Doha
Qatar Stock Exchange (QSE) is expected to witness new listings before the end of 2023 that include an investment fund in sustainability along with two companies, one of them will be listed in the key market and the other one in the startups, QSE Acting CEO Abdulaziz Nasser Al Emadi has said.
Talking to media on the sidelines of the listing ceremony of Meeza shares on QSE, Al Emadi said that the new listings are expected to be finalised during the last quarter of 2023, considering the flexibility of the regulating legislation and procedures QSE has enforced in collaboration with the concerned entities.
He added that the legislation and procedures offer multiple options for companies that want to be listed, indicating that the listing of ‘Meeza’ in QSE as the first Qatari public shareholding company to be listed in accordance with the price-building mechanism is a qualitative addition in the technological field which QSE strives to expand.
Commenting on the recent announcement by QSE about the commencement of the covered short-selling activity and securities lending and borrowing, Al Emadi highlighted that such activity is complementary to the rest of the activities in the market and is critical for the derivatives market, including its criticality for the qualified investors and founding investors for hedging purposes.
He called on all investors and market dealers to have a look at the rules and instructions and benefit from them in the investment process.
In addition, covered short selling activity and securities lending and borrowing come within the initiatives aimed at upgrading market operation mechanisms and strengthening liquidity in collaboration with Qatar Financial Markets Authority (QFMA), and Edaa while the processes of this sale will be subject to the rules issued by QFMA’s board of directors’ decision No. 5 of 2022 under the regulatory framework.
This is in addition to the rules of securities lending and borrowing issued by the same board in its decision No. 4 of 2022, QSE’s relevant procedures issued under market notice No. 26 of 2023, market notice No. 27 of 2023, as well as the rules and procedures of securities lending and borrowing.
Only this type of sale will be exclusively allowed for market makers, liquidity providers, and qualified investors, including members and other cases approved by QFMA, while lending and borrowing processes will be carried out in Edaa’s post-trade system by its members and custodians who are permitted to conduct this activity under the name of securities lending and borrowing’s agents, as the role and responsibilities of those agents have been determined under article No. 3 of the rules of securities lending and borrowing issued by QFMA.
The Qatar Stock Exchange (QSE) index concluded this week’s trading down by 1.96 percent, losing 206.92 points to stand at 10,364, compared to last week’s trading, under the pressure of the real estate sector, which fell by 2.82 percent, transport sector by 2.21 percent, banking, and financial sector by 2.07 percent, industrial sector by 1.8 percent, and services and consumer goods by 1.28 percent.
On the other hand, the index performance during the same period saw an increase in the shares of the insurance sector by 1.64 percent and the communications sector by 0.62 percent, respectively, amid an improvement in liquidity levels, as the value of trading increased during this week to reach QR 1.960 billion, compared to its level last week, which amounted to QR1.911 billion, an increase of about QR50 million, while the average trading during the past week was around QR 392 million per session.
In remarks to QNA, financial analyst Ramzi Qasimia attributed the decline in the QSE index in the last sessions of this week to the announcement of the semi-annual FTSE Russell index review, which included the entry and exit of some companies and the reclassification of others, in addition to pressure added by the performance of some sectors, especially real estate, banking, and industry.
He stressed the improvement in the performance of the QSE general index during the last two trading days, driven by the gains achieved by the shares of the newly listed company, Meeza, which surged 16 percent during two trading sessions since its listing on Wednesday, in addition to the investors’ anticipation of the revisions of the Morgan Stanley index during the next week.
He pointed out that the QSE’s management made significant efforts to simplify procedures and revitalize the market during the past few days, especially in light of its recent announcement of the start of the covered short-selling activity, and the activity of securities lending and borrowing, which are complementary tools to the rest of the activities in the market, and of importance for investors to benefit from in their funds and investment portfolios.
