Sunday, Jan 29, 2012
(This story was originally published Thursday.)
DOHA (Zawya Dow Jones)--Foreign ownership limits in Qatar are unlikely to increase above 25% before June, the Qatar Exchange chief executive said, a decision that makes an upgrade to emerging market status by index compiler MSCI Inc. at its next review all the more improbable.
"I wouldn't expect any news on that talk (foreign ownership) for the time being," Andre Went told reporters in Doha Wednesday.
Stringent foreign ownership levels for Qatari stocks that are capped at 25% are a key issue in the country's so far failed bid to clinch an upgrade by MSCI to emerging market status, from frontier. In December, MSCI postponed a decision by six months to upgrade the stock markets of both the United Arab Emirates and Qatar.
Investors in both Arab Gulf stock markets were looking for an upgrade amid hopes it would trigger increased foreign fund inflows and revitalize the stock markets, but low foreign ownership limits were seen as a potential deal breaker. Many foreign investors and fund managers closely track emerging markets.
Qatar will review foreign ownership levels in June, Went said.
Trading on Qatar's junior bourse for smaller companies will start at the end of the year, he added. Trading of government Treasury bills on the Doha bourse began last month, Went said.
-By Alex Delmar-Morgan, Dow Jones Newswires; +974 6659 9818; alex.delmar-morgan@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
29-01-12 0355GMT
