Qatar National Bank | Dec 20, 2015 04:20AM ET
We remain optimistic on the Qatari equity market in the long term. We believe the significant sell-offs driven by declining oil prices have been overdone and consider most of our equities under coverage as attractive opportunities. On an average basis, the 17 Qatari equities we coverimply a long-term upside of 26% to our price targets. Dividend yields remain strong with stocks under coverage expected to yield 5.6% and 5.9% in 2015 and 2016, respectively. Valuations continue to be attractive with most companies trading at compelling price-to-earnings multiples along with the best dividend yields in the region. On an overall basis, the Qatar Exchange Index trades at a 2016 P/E of 10.4x complemented by a dividend yield of 5.6%, while the Bloomberg GCC 200 Index trades at 10.8x 2016 P/E along with a 2016 dividend yield of 4.9%.
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