Qatar Exchange CEO: Developing Diversified Investor Base Is Central to the Development of Qatar Equity Markets

Doha, May 10 (QNA) - CEO of Qatar Stock Exchange Rashid bin Ali Al Mansoori believes that 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 the Qatari equity markets. "Whilst liquidity in the secondary markets is a clear objective in terms of capital allocation objective we are also mindful of the Exchanges 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," Al Mansoori said in a speech on the sidelines of the conclusion of an investor forum held in New York, issued by Qatar Exchange on Wednesday. The two-day Forum was organized by Qatar Stock Exchange (QSE), in collaboration with QNB Financial Services and HSBC. It aimed to support the further development and practice of QSEs listed companies investor relations. Al Mansoori said that Qatar Stock Exchange 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. Al Mansoori acknowledged the commitment of the Qatari 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. He noted that the various emerging markets indices continues to promote new inflows and the work Qatar is doing in terms of margin trading and liquidity provision and market-making, securities lending and borrowing and covered short selling will all assist in growing liquidity for all investors including the international investors. 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 worlds 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. Eleven listed corporates, representing blue-chip investment opportunities in the Qatari market used the opportunity to meet with the worlds 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. (QNA)