After this year’s diplomatic and political tussle with its Arab Gulf neighbors and the resulting business setbacks, shares of Qatari entities are predicted to start at their lowest level at the beginning of 2018, compared to emerging-market peers since early 2010.
A Bloomberg report says a stock selloff following the political rift resulted in plunging valuations, in contrast to the premiums they carried for the last three years or more.
A selloff triggered by a political spat between Qatar and its neighbors sent valuations plummeting. While politics will remain in focus in 2018, analysts and investors say some shares in Doha are now trading at attractive levels.
The QE Index is at the lowest level globally. While the past two weeks saw marginal improvement on the hopes of likely budgetary support, the index is still down 18 percent this year, “making it the second-biggest loss among major indexes globally in dollar terms.”
On Sunday, the index fell 0.3 percent to 8,600 points.
An expert told Bloomberg that investors would most likely be looking at how the political and diplomatic standoff pans out, rather than the opportunities they could find as a result of the cheap evaluations.