DOHA: Al Khaliji Commercial Bank and Medicare Group will replace National Leasing and Widam Food Company in the Qatar Exchange benchmark index (QE Index) from April 1, 2014.
In a notification posted Wednesday, the Qatari bourse said, "weights of any component will be capped at 15 percent as of rebalance date".
The QE Index which is a Price Return Divisor Index comprises top 20 Qatari companies ranked by free-float market capitalization and daily average traded value.
The reshuffle follows "Qatar Exchange's perdiodic reviews based on key criteria like free float market capitalisation, liquidity, 12-month trading data" a QE official told Qatar News Agency (QNA) today.
Al Khaliji Commercial Bank's weight is 2.6 percent (initial 2.36 percent) and Medicare is 0.62 percent (initial 0.56 percent).
QE has also reviewed qualifying stocks for the QE All Share Index.
The components remain unchanged with 40 stocks qualifying for inclusion.
Weights are indicative based on March 18 closing prices.
QE All Share Index contains listed stocks with annual share velocity greater than 1 percent.
QE Al Rayan Islamic index components unchanged but weightings shall be re-structured based on the ranking of a company’s liquidity adjusted capitalization.
An index is a numerical value that measures the performance of a given market through aggregation of the prices of a representative basket of stocks.
Indices are calculated as weighted average of the constituent prices, the weight depends on methodology but the majority of indices are weighted by market capitalization.
QE reviews take place on a regular basis to ensure selected stocks as well as their weightings are correctly representing the underlying market. (QNA)