Global index complier FTSE Russell has shifted Ezdan Holding Group to large cap segment from the mid-cap group and added three other Qatar Stock Exchange-listed companies under its microcap segment.
The change will be effective from the close of September 17, 2020 (Thursday), FTSE Russell said after its semi-annual review.
Those added within the microcap segment of the London-based FTSE Russell are Qatar National Cement, which comes under industrials sector of the QSE; and Islamic Holding Group (banks and financial services) and Mannai Corporation (consumer goods and services).
In its semi-annual review, the index compiler decided to delete Qatar Islamic Insurance from the microcap segment.
The companies’ inclusion and reclassification in global indices are subject to various criteria, the most important of which are the size of the company’s investable capital and market capitalisation, liquidity and turnover rates.
The periodic index reviews, including companies’ reclassifications, additions and deletions, carried out by international index providers are among the main factors influencing the investment appetite of international investors and portfolio managers.
The QSE is seen actively pursuing a strategy to lure overseas investments as part of further diversifying its investor base, having put in place the required legislation, including a higher up to 49% foreign ownership limit (FOL).
Many companies have already enhanced FOL up to 49% and the Qatar Central Securities Depository (QCSD) has amended the FOL in this regard. Among them are Industries Qatar, Gulf International Services, Mesaieed Petrochemical Holding, Qatar Electricity and Water (QP subsidiaries), Qatar Islamic Bank, Barwa, Woqod, QNB and Qatari Investors Group.
After Qatar’s upgrade to emerging market status by the international index compilers as MSCI, Standard and Poor’s Dow Jones and FTSE Russell; the domestic stock market witnessed passive foreign funds inflow but was not that substantial in view of the restrictions on FOL at that time. Hence, through an Amiri decree, the FOLs were enhanced up to 49%, the move which ought to strengthen the international funds inflow.
The bourse had said it has become a focus of interest for many foreign investment portfolios from the US, Europe and Asia, and therefore has readied its infrastructure and technical to admit new companies and instruments.