Economy in Turkey: “Unusual Qatar Rally in Istanbul Stock Market”

The astronomical rise in the market value of QNB Finansbank, with a meager circulation rate of 0.12 percent on the Borsa Istanbul, continues. The bank’s value has surpassed the value of its parent bank in Qatar, which holds 99.88% of its shares.

On the Borsa Istanbul, QNB Finansbank, with an actual circulation rate of 0.12 percent, continues to experience an incredible surge in market value. According to experts from Bloomberg, QNB Finansbank’s shares hit the ceiling again today, bringing the bank’s market value to 1 trillion 120 billion Turkish Lira (41 billion dollars).

As a result, QNB Finansbank’s value has exceeded the 40 billion dollar market value of its parent company, Qatar National Bank (QNB). The increase in QNB Finansbank’s market value since the beginning of the year has surpassed 500%.

The report notes that the rapid increase in interest from domestic investors, especially during the pandemic, has contributed to unexpected surges on the Borsa Istanbul. Stocks with low circulation rates, which are more sensitive to sharp fluctuations, have been particularly affected by this situation.

99.88 PERCENT OWNED BY QATAR

Of the more than 3.3 billion shares of QNB Finansbank, only 4 million are publicly traded, and 99.88% of the bank’s shares are held by Qatar National Bank. QNB Finansbank and its parent company in Qatar, QNB, did not respond to Bloomberg’s inquiries on the matter.

In the meantime, an expert from Global Securities also pointed out that companies with very low circulation rates could experience sharp movements and unfair valuations in their stock prices. The number of investors on the Borsa Istanbul has reached 7.8 million with an astronomical increase of nearly 5 million people in the past year.

QATAR’S PARTICIPATION IN THE STOCK EXCHANGE

In late 2020, the Turkey Wealth Fund sold a 10 percent stake in Borsa Istanbul A.S. to the Qatar Investment Authority, Qatar’s sovereign wealth fund, for $200 million.