Doha, November 03 (QNA) – The general index of the Qatar Stock Exchange recorded this week, an increase of 0.360 percent, to gain 43,770 points, to rise to the level of 12,306 points, compared to the end of trading last week.
Financial analyst Ahmed Aql told Qatar News Agency (QNA) that this week’s increase was consistent with end-of-month, with the Oct. 31 session seeing a rise of 100 points. He added that the MSCI Emerging Market Index revisions were also having a positive impact on the market, especially that expectations are the rebalancing will change the weightings of some of the listed companies.
On the other hand, the financial analyst confirmed that the decline in the general index of the Qatar Stock Exchange in todays trading falls within the context of a general setback of global stock exchanges, led by the decline of the US Dow Jones index, which was affected by the speech of Federal Reserve Chairman Jerome Powell, in which hinted that rates could stay higher for longer. Investors interpreted Powell’s remarks as hawkish and that tighter financial conditions will persist for some time, as the Fed looks to bring inflation under 2 percent. Aql said that investor sentiment worldwide, including Qatar, is impacted by these remarks, causing capital flows towards more rewarding returns available, especially with higher interest rates.
He added that stocks are facing a real challenge of offering returns higher than that of bonds, with implied equity risk premiums at 6 percent. Other challenges facing companies is financing their investments in light of higher interest rates. (QNA)
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