The Qatari stocks are all set to offer a potential global recovery opportunity in the second half of this year, according to one of the top portfolio managers in the region.
Talal Samhouri, a senior portfolio manager at Aventicum Capital Management, says that both Qatar and Saudi Arabia are preparing to provide a number of attractive investments as regional markets approach the traditionally quiet Ramadan trading period.
While the FIFA 2020 World Cup is attracting global media attention, investors seem to be more interested in the profile of its listed companies that are internationally focused and well-positioned to tap into any broad recovery.
“The biggest reason is the valuation of the Qatari market compared to other regional markets. 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.”
As economies emerge from the pandemic a sharp surge in global consumption is clearly visible and it 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 countries including Saudi Arabia and Qatar.
Aventicum, a Doha-headquartered joint venture between Credit Suisse and Qatar Investment Authority, expects oil to trade between $55 to $65 for the rest of 2021.
According to CI Capital, Saudi banks also offer potentially attractive valuations as the Kingdom’s emerging mortgage sector opens up. It stated 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, surpassing the wider market.