DUBAI: Forget football, Qatari stocks offer a potential global recovery play in the second half of the year, according to one top regional portfolio manager.
Both Qatar and Saudi Arabia offer a number of attractive investments as regional markets approach the traditionally quiet Ramadan trading period, Talal Samhouri, a senior portfolio manager at Aventicum Capital Management, said in a TV interview with Bloomberg News on Friday.
While next year’s FIFA 2020 World Cup is attracting global media interest, investors may be more interested in the profile of its listed companies which are more globally focused and well positioned to tap into any broad recovery, he said.
“The biggest reason is the valuation of the Qatari market compared to other regional markets,” he said. “It has not appreciated as much as the rest of the regional market and I believe this is an opportunity for investors to start adding to that market, especially as most of that market is linked to world trade and GDP growth."
A sharp rise in global consumption as economies emerge from the pandemic has led to expectations of increasing demand for key commodities from oil and aluminum to petrochemicals and steel, some of which are exported from Gulf states such as Saudi Arabia and Qatar.
Aventicum, a joint venture between Credit Suisse and Qatar Investment Authority, expects oil to trade between $55 to $65 for the rest of 2021.
Meanwhile, Saudi banks also offer potentially attractive valuations as the Kingdom’s fledgling mortgage sector opens up, according to CI Capital.
It said that the worst of the provisioning in the sector was now over and largely priced in.
The Tadawul banking index has gained about 15 percent so far this year, outpacing the wider market.
Investors look beyond World Cup to post-Ramadan Qatari and Saudi recovery plays
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Investors look beyond World Cup to post-Ramadan Qatari and Saudi recovery plays
- Qatari stocks seen well positioned to tap into broad global recovery
- Saudi banks also offer potentially attractive valuations
Closing Bell: Saudi main index closes in red; Nomu gains
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend on Tuesday, as it shed 34.44 points or 0.33 percent to close at 10,290.76.
The total trading turnover of the benchmark index stood at SR3.57 billion ($950 million), with 80 of the listed stocks advancing and 178 declining.
The Kingdom’s parallel market Nomu advanced by 0.43 percent or 100.66 points to close at 23,327.60.
The MSCI Tadawul Index, however, declined by 0.19 percent to 1,368.49.
The best-performing stock on the main market was Almasane Alkobra Mining Co., as its share price increased by 7.83 percent to SR95.
The share price of Electrical Industries Co. advanced by 6.17 percent to SR11.18.
Saudi Arabian Mining Co., known as Maaden, also saw its stock price climb by 5.74 percent to SR64.50.
Conversely, the share price of Shatirah House Restaurant Co. declined by 8.14 percent to SR8.13.
On the announcements front, Saudi Telecom Co. said that it plans to issue a dollar-denominated international sukuk under its $5 billion International Trust Certificate Issuance program.
According to a Tadawul statement, the issuance program was set up on Jan. 6, following a board approval obtained on Sept. 30.
Stc added that the issuance will be conducted through an offshore special purpose vehicle established outside Saudi Arabia, adding that the proceeds will be used for the company’s general corporate purposes.
The statement further said that the sukuk may be issued in one or more tranches or series by way of an offer to eligible investors in the Kingdom and internationally.
The telecom giant added that the amount and terms of the offer of the sukuk will be determined based on market conditions.
The share price of stc edged down by 1.08 percent to SR42.06.
