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Satyendra Pathak
Doha
The QE Index ETF (QETF), the first exchange-traded fund (ETF) to be listed on Qatar Stock Exchange, received a huge response from investors on the first day of its trading on Sunday.
The QETF, which is founded by Doha Bank and managed by Amwal, closed the first day of trading with traded volume of 60,885 and the traded value reaching QR5.4 million.
The debut of the QETF was above expectations as the market received it with welcoming volumes, Amwal Asset Management Head Talal F Samhouri told Qatar Tribune.
"We believe the trading will continue to be healthy as investors learn about the benefits of investing through ETFs," Talal said.
The QETF, which opened for trading at QR89 per unit, closed at QR87.25 on the first day and saw a total number of 186 trades from investors seeking to capture exposure to top companies listed on the bourse.
The ETF is designed to track the Qatar Exchange Index which screens for the top 20 listed companies in Qatar by market capitalisation and liquidity.
"We aim to make the QETF the vehicle of choice for investors who wish to gain exposure to Qatar. The local and regional investors have evolved from 'what is an ETF?' to now asking how this can benefit them as investors. This shows the evident awareness Amwal and its partners have put in educating the market participants as well as the investors," Talal said.
The ETF industry holds over $5 trillion in total assets under management. Since the decision to include Qatar to Emerging Market indices by MSCI and FTSE, there has been an increase in foreign funds invested in the market both actively and passively via index trackers.
Talal said the QETF, which has started trading with as initial open-ended capital of QR150 million, has got approval from the Qatar Central Bank to raise its capital up to QR10 billion.
Commenting on the launch, Amwal Chairperson Sheikha Hanadi Nasser bin Khalid al Thani said,"Qatar's inclusion in Emerging Market indices has increased its profile in the global investment community over the last four years and this reflects Qatar's outstanding growth on the global stage. Amwal took it upon itself to lead the innovation initiative by launching the QETF, which is designed for investors who wish to have a direct exposure to the Qatari markets while maintaining their rights for the dividend distributed by the underlying companies."
Amwal CEO Fahmi Alghussein said,"With the launch of the QETF, Amwal is ushering the evolution of investment products in Qatar in a variety of ways. Investors with an investment strategy that incorporates Qatari listed companies can now gain direct access to the market at one of the cheapest total expense ratios in Emerging Markets."
Talking to Qatar Tribune, Doha Bank Group CEO R Seethraman said the bank has plans to organise road shows in various countries to attract the attention of foreign investors to Qatar's maiden exchange-traded fund.
Seetharaman said the bank would look for possibilities to list QETF on stock exchanges of other countries as well.
