Qatar First Bank will be removed from the Al Rayan Islamic Index, while Qatar Cinema will join both Qatar bourse's All Share Index and Consumer Goods and Services Index, effective from April this year.
Qatar General and Reinsurance will also be removed from both All Share Index and Insurance Index, also effective from April 2019, said a spokesman of the Qatar Stock Exchange.
However, the main barometer 20-stock Qatar Index will remain unchanged with the constituents being Woqod, Mesaieed Petrochemical Holding, Qatar Insurance, QNB, Industries Qatar (IQ), Masraf Al Rayan, Qatar Islamic Bank (QIB), Ooredoo, Qatar Electricity and Water, Barwa, Nakilat, Commercial Bank, QIIB, Milaha, United Development Company (UDC), Doha Bank, Gulf International Services, Vodafone Qatar, Medicare Group (MCG) and Qatar First Bank.
Under the new index practices, a review is carried out twice a year to ensure that the selection and weighting of the constituents continues to reflect the purpose of the index.
The other constituents of Al Rayan Islamic Index are Masraf Al Rayan, IQ, QIB, Barwa, Gulf Warehousing, UDC, Vodafone Qatar, QIG, MCG, Aamal Company, Al Meera, QIIB, Qatar First Bank, Qatar National Cement, Qatar Industrial Manufacturing Company, Widam Food (formerly Mawashi) and Qatar Electricity and Water Company .
The bourse has seven sectors – banks and financial services (with 13 constituents), insurance (five), industrials (ten), real estate (four), telecom (two), transportation (three) and consumer goods and services (nine) in the ‘All Share Index’, which comprises listed stocks with annual share velocity greater than 1%.
The QSE had revised its key benchmark methodology, stipulating that at least 80% of the trading days and a minimum of 5% annualised velocity during the final quarter of the 12-month review period.
The changes to the index methodology of QE Index following a decision by the QSE Index Committee and the approval of the Qatar Financial Markets Authority. The decision by the index committee is designed to enhance the tradability of the index and ensure that consistent liquidity is a determinant of index inclusion.