ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for tools Level up your trading with our powerful tools and real-time insights all in one place.

Qatar Stock Exchange tumbled

Share On Facebook
share on Linkedin
Print

Six Arab countries have severed all ties with the oil-rich state of Qatar. Saudi Arabia, Bahrain, the UAE, Libya, Egypt, and Yemen summoned their diplomats, shut down their borders, closed their airspaces, and barred further economic relations. All this comes as a retaliation to Qatar’s suggested financial backing of various Sunni extremist groups, the most notorious of which being ISIS and the Muslim Brotherhood.

©

Such diplomatic isolation of Qatar, a peninsular nation of 2.7 million, raises pressing concerns for Qatar’s various projects, industries, and infrastructural developments. Qatar imports up to 40% of its food from Saudi Arabia.  With this border closed however, Qatar will be forced to rely upon food and material imports brought in by cargo ships and aircrafts.  This will drastically drive up food prices and most likely serve as a catalyst for increases in inflation.  Supermarket rushes have already been reported in the capital, Doha.  Additionally, Qatar, which will host the 2022 World Cup, will face higher construction costs and delays, as it imports high quantities of construction materials over land each year, putting international investments into the World Cup at high risk.

Furthermore, Qatar’s large Gulf and North African expatriate population, a prosperous and  critical aspect of Qatar’s economy, may leave the country.  Emirati and Saudi firms could withdraw from Qatar indefinitely, and 180,000 educated Egyptian workers may be forced return to Egypt.

All blue-chip stock listed on the Qatar Stock Exchange tumbled this morning AST, with many Qatari energy and property companies experiencing declines as steep as 10%.  QSE initially saw drops of 7% as investors reacted to the new diplomatic isolation with caution, and closed today (AST) down 7.27% in overall value.  All 44 companies listed on QSE ended with stocks in the red.  Fears over potential conflicts regarding further OPEC production cuts due to the diplomatic row saw Brent crude down 0.7% at eleven this morning BST, $49.57.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com