For investors seeking momentum, iShares MSCI Qatar ETF (QAT - Free Report) is probably on the radar now. The fund just hit a 52-week high and is up nearly 41% from its 52-week low price of $13.01/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.
QAT in Focus
The fund tracks the MSCI All Qatar Capped Index, which is a free float adjusted market capitalization-weighted index comprising large, mid or small-capitalization companies and components primarily include energy, financials and industrials companies. The product charges 62 bps in fees (see all Africa-Middle East Equity ETFs here).
Why the Move?
Investors should note that the Qatar economy rebounded strongly in recent sessions, shrugging off the trade and travel ban imposed on the country 14 months ago by its neighboring countries led by Saudi Arabia. The ban was the result of an accusation that Qatar supports terrorist groups in the region.
However, per the senior director of asset management at Al Rayan Investment in Doha, “profitability for a number of companies having significantly improved over the last 12 months,” which is one of the reasons for the recent ascent of the market. Plus, “higher oil prices and an increase in foreign-ownership limits in a number of blue chips this year,” have also led Qatar’s stocks to haul in more than $1 billion from abroad.
More Gains Ahead?
It seems that the fund will perform decently in the near term given a positive weighted alpha of 10.90.
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