DOHA: Al Meera and Qatar Insurance have entered Qatar Exchange’s (QE) 20-stock benchmark index. The bourse’s April 2013 reviews of the ‘qualifying stocks’ decided to drop Al Khaliji Commercial Bank and Mazaya from QE’s ‘top 20 company’ list. The new Index components will come into effect from October 1, 2013.
The replacement of Al Khaliji Commercial Bank and Mazaya by Al Meera and Qatar Insurance was followed by the QE’s mandatory semi-annual index rebalancing exercise.
Each year, in April and October, the QE would review the performance of the listed companies, including their turn over and market capitalisation, before restructuring the index, QE sources told The Peninsula.
Robust sales and shop rentals helped Al Meera Consumer Goods Company to report a 23 percent jump in net profit to QR57.45m in the first six months of this year. Its domestic operations reported QR57.79m net gains. Al Meera shares traded 0.51 percent up to QR137.70 today.
Qatar Insurance was down 0.49 percent to QR60.50 yesterday. The company reported net profit of QR434m for the six months ended June 30, 2013, compared to QR302m for the same period in 2012.
Ideally, each stock influences the Index in proportion to its price per share. Stocks with a higher price will be given more weight, and will have a greater influence over the performance of the index.
As per the QE index rules, any qualifying component exceeding 15 percent weight in the index as of market close September 30 will have its weight capped at the 15 percent level and excess weight allocated to remaining stocks proportionately.
According to the latest review, Qatar Insurance’s initial weighting has been indicated to 2.89 percent and rebalanced to 3.34 percent under the 15 percent cap. Al Meera’s initial weighting is 0.74 percent and rebalanced as 0.85 percent.
The QE’s April stock review also facilitated National Cement to join the QE Al Rayan Islamic Index, increasing the total number of components to 18. The basket is re-structured based on the ranking of a company’s liquidity adjusted capitalisation. National Cement’s initial index weight has been rebalanced to 5.00 percent.
The bourse has also reviewed the stocks for the QE All Share index. The QE All Share Index contains listed stocks with annual share velocity greater than 1 percent.
In the latest review Al Ahli Bank joined the index and Mannai Corporation is removed. Ezdan is yet to qualify for All Share inclusion.