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Market capitalisation of GCC firms soar 30%.

Muscat: The collective current market capitalisation of GCC countries stands in excess of $700 billion, growing by 30 per cent since 2008.

Qatar exhibited the highest growth since 2008 with its market cap almost doubling, racing to overtake Kuwait to become the second largest exchange by market cap within the GCC, said Global Investment in a statement.

Kuwait's market capitalisation, which suffered a 12 per cent decline since 2008, is just ahead of Qatar; $102 billion against Qatar's $100 billion. The position of Saudi Arabia has seen further enhancement in its market share over the period under consideration; that is from 45 per cent in 2008 to 53 per cent to date. Qatar has been the only other country to witness a rise in its market share, while that of Kuwait has seen the worst erosion.

According to Global, funds generally tend to ignore most mid-caps given that they are rarely and scarcely covered by sell-side analysts who tend to focus on large cap or mainstream or blue-chip companies. On an yearly basis for the past three years, the mid cap index has clearly outperformed the general index by a large margin in most cases, averaging at 4%-5%; during the course of this year so far, the mid cap index has generated a return of 15.6 per cent which is twice the return made by the general index. Global has employed a multi-layered filtering process to come up with the said companies.

These include market cap between $200 million and $1 billion, value traded in excess of $0.7 million and positive bottom-line for last five years.

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Publication:Times of Oman (Muscat, Oman)
Geographic Code:7QATA
Date:May 21, 2012
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