A Rough Ride for Foreign Investors

If you had invested in the DSM at its very conception, then despite the huge falls and rises the market has seen you would have made profits.

At the end of 2000 the DSM had a captilisation of just under 19 billion. At the end of 2008 the capitilisation stood at 279 billion - well down from the 347 billion of the previous year but a hefty profit nonetheless.

Unfortunately for foreign investors, the year that saw the DSM peak was the year that foreign investors were allowed into the market: 2005.

Turbulent Times

In recent days any early investors will have further causes for woe.

Shares fell over 6% on one day last week, and yesterday they continued their fall, losing 23% of their value to hit a new year five year low.

With analysts saying that trading is likely to be subdued, there is little hope of a major recovery.

Future opportunity?

Of course, the more volatile the market the more potential for profit there is.

And if we agree with Warren Buffet that we should rejoice when share prices go down and be sad when they go up, then now are happy times indeed.

The long term future of Qatar remains bright, with its vast natural resources ensuring it a steady income stream, especially when the world economy recovers.

What may put some investors off, though, is the lack of information and analysis available in English.

Until that happens, many investors may prefer to stay clear of investing in individual stocks.

Look up the DSM with Qatcom, Qatar's largest online business directory.