November marks the best month for Qatar’s stock exchange this year.
November saw over 620 points rise in the Qatar Stock Exchange (QE) Index, making it the best monthly performance in 2020.
Last Monday, the QE Index closed at 10,262 points, marking a rise of around 6.5 percent from 9640 points at the beginning of the month.
The news comes as a relief for all investors given how the market has been unsteady since the COVID-19 outbreak in March, during which it plunged to around 8,300 points.
“Sentiments play a crucial role in setting trends in the stock market and there were many positive news in November that fuelled the optimism of investors,” a Doha-based financial analyst told The Peninsula.
“The biggest news was from the global front as three pharmaceutical companies announced positive outcomes regarding COVID-19 vaccines,” it added.
“Many companies announced better than expected third-quarter results which also worked in favour of the stock market.”
During the month of November, the stock market witnessed a great boost due to several good news across global and local markets. By the second week of the month, the QE Index saw a surge of 320 points buoyed by the outcome of the US presidential elections.
The QSE index has risen over 200 points in the last four trading sessions. The index, which measures the 20 largest and most liquid stocks, climbed to 9,908 points on November 9, from 9,701 points on November 3.
The start of the vote count on Nov 4 saw a buying spree by investors, as more news of President-elect Joe Biden’s victory came to light, showing clear optimism from investors.
The rally continued to strengthen as further confirmation of Biden’s victory made global headlines. Finally, following three days of uncertainty amid ongoing vote counting, Biden was declared the winner.
This gave much-needed clarity to the market, according to analysts.
The much-awaited news of COVID-19 vaccines also played a crucial role in propelling the market after a long wait and instability.
In September, Moody’s Investors Service, a leading provider of credit ratings, research, and risk analysis, said that Qatar’s unsecured debt rating is at Aa3 with a stable outlook, despite the pandemic.
The rating was pinned on Doha’s resilience in the face of obstacles, including a temporary decline in oil prices and geopolitical tension, Moody’s said.