DOHA: Small investors are quite excited about the possibility of the face value of Qatari stocks being slashed by 10 times, to QR1 from QR10.
If the move materialises, it could mean a similar reduction in the market price of all 42 listed stocks.
And those stocks that are high-priced could be easily bought in bigger lots by retail investors.
Analysts said the move, if enforced, could cut the market price of the listed shares by 10 times.
This would mean, for instance, that the market price of Woqod share which was yesterday quoting at QR285.10, could be reduced to QR28.51.
This is the highest-priced stock listed on Qatar bourse.
“For small investors like us, it would be so easy to buy Woqod stocks in bigger lots — like in 50s and 100s — once their market price is down,” said a small investor who gave his name briefly as Bakheet.
Woqod (Qatar Fuel) is the local distributor of petroleum products and known for paying consistently high dividend to shareholders.
Other high-priced shares listed on the Qatari equity market include QNB, Ooredoo, Qatar Electricity and Water Company, Industries Qatar, and Qatar National Cement Company.
As another example, the market price of QNB share yesterday was QR165.90. Once the above move is brought into force, the price would be reduced to only QR16.59.
International wire agency Reuters reported on Wednesday that the Qatar Financial Markets Authority (QFMA) — the regulator of Qatar Exchange — had proposed cutting the par value of the listed stocks to QR1.
The report could not be independently confirmed by this newspaper.
Quoting market sources, Reuters said QFMA had sent proposal to industry participants.
The wire agency, quoting experts, also said the proposal was aimed at stimulating trade as that would particularly make high-priced stocks more attractive for small investors.
The Peninsula
