Doha Bank and Milaha (Qatar Navigation) will replace United Development Company and Vodafone Qatar in the Qatar Stock Exchange's 20-stock Qatar Index, effective from April 1.
The other constituents of the main barometer will remain Industries Qatar, QNB, Qatar Islamic Bank, Masraf Al Rayan, Commercial Bank, Woqod, QIIB, Nakilat, Qatar Electricity and Water, Mesaieed Petrochemical Holding, Ooredoo, Barwa, Qamco, Gulf International Services, Ezdan, Baladna, Investment Holding Group and Salam International Investment.
All listed companies are ranked by giving free float market capitalisation with a 50% weight and average daily value traded also 50% weight. Companies with velocity less than 5% are excluded from the review, as are entities whereby a single shareholder can only own less than 1% of outstanding shares.
A 15% cap is applied to an individual constituent's weight in the index, with the excess weight distributed proportionately among the remaining index constituents. In such cases, the fixing of shares figures takes place only at rebalance dates.
Milaha will join the Al Rayan Islamic Index, while Al Khaleej Takaful Group and Qatar Islamic Insurance will be removed from the index, a communiqué from the bourse said.
The other constituents of the Al Rayan Islamic Index are Masraf Al Rayan, Qatar Islamic Bank, Industries Qatar, Woqod, Ooredoo, Mesaieed Petrochemical Holding, QIIB, Barwa, Qatar Electricity and Water, United Development Company, Qamco, Vodafone Qatar, Ezdan, Al Meera Consumer Goods, Baladna, Qatar National Cement, Medicare Group, Aamal Company, Qatari Investors Group, Gulf Warehousing, Investment Holding Group and Qatar Industrial Manufacturing.
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.
No changes have been made in the constituents of All Share Index and sectors indices.
The bourse has seven sectors – banks and financial services (with 12 constituents), insurance (six), industrials (10), real estate (four), telecom (two), transportation (three) and consumer goods and services (10) in the ‘All Share Index’.
The index free-float for a stock is total outstanding shares minus shares directly owned by government and its affiliates, those held by founders and board members and shareholdings above 10% or greater of the total outstanding (except those held by pension funds in the country).
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