15 September 2022

Financial Analyst to QNA: FTSE Review Application Enhances Liquidity and Short Selling and Increases Efficiency of Stock Pricing

  • qe weekly

Doha, September 15 (QNA) - At the end of this week's trading, Qatar Stock Exchange index returned to the green zone, gaining 294.810 points, with a growth rate of 2.280 percent, and ascending to the level of 13243 points, supported by the performance of the banking, financial services and telecommunications sectors.
The financial analyst Tamer Hassan, said, in a statement to Qatar News Agency (QNA), that the positive performance of Qatar Stock Exchange index this week was driven by the positive performance of today's session, which benefited from the large liquidity that was injected at the end of its transactions, which rose to the level of QR 1.443 billion.
He explained that the recorded increase in the level of liquidity is mainly due to the beginning of the application of the FTSE review on some companies on September 15, when Qatar Navigation Company (Milaha) was included in the classification of companies with large capital, and the reclassification of Ooredoo company from large capital companies to medium-capital companies.
The weekly report of Qatar Stock Exchange revealed an increase in the market value at the end of the weeks trading to reach QR 734.338 billion, compared to its level last week, which amounted to QR 719.447 billion, in addition to recording the value of stock trading about 3.404 billion riyals through the sale of 760.337 million shares, implemented following the conclusion of 84,778 deals. .
On the other hand, Hassan expected that the issuance of Qatar Financial Markets Authority, the short covering selling rules, and the rules for lending and borrowing securities, would have a positive impact on Qatar Stock Exchange, beginning to be implemented next October, by raising trading values and pumping more liquidity into the market, in addition to increasing the efficiency of the market, pricing stocks and improving corporate governance.
Short covering selling means that any authorized person (market maker, liquidity provider, qualified investor) sells borrowed securities, or enters into borrowing arrangements, provided that the positions arising from the sale in this case are covered on the settlement date in accordance with these rules.
He said that these decisions fall within the continuous development and modernization of capital market regulations and legislation, in line with the global developments witnessed by this vital sector, and its needs at the local level. (QNA)


Economy, Qatar
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