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Satyendra Pathak
Doha
London-based global index provider FTSE Russell (FTSE) has issued an indicative list of 20 Qatari stocks which will be eligible for addition to FTSE's Secondary Emerging Market Index with effect from September 20 this year.
According to a statement on Qatar Stock Exchange (QSE) website, the indicative list of Qatari stocks comprises Al Meera, Commercial Bank of Qatar, Doha Bank, Ezdan, Industries Qatar, Masraf Al Rayan, Medicare, Ooredoo, Qatar Electricity & Water Company, Nakilat, Qatar Insurance, Qatar International Islamic Bank, Qatar Islamic Bank, Qatar National Bank, Qatar Navigation, Qatari Investors Group, Salam International, United Development Company and Vodafone Qatar.
The semi-annual review of FTSE included these 20 Qatari stocks for possible upgrade based on their performances in the first half of this year.
The final list of Qatari stocks to be upgraded will be published after the market closes on August 31, the statement said.
The FTSE had recently said that it would relax the criteria for deciding which of Qatar's shares will join its emerging markets index next month.
Though the weightings of selected Qatari stocks will also be announced on August 31, it is expected that QSE will have an overall weight of about 1.4 percent in the FTSE all-emerging index which is a combination of secondary and advanced emerging markets indexes.
According to Arqaam Capital estimates, this weighting should result in passive flows of about $1 billion to the Qatari bourse.
As per the estimates of EFG-Hermes Holding the promotion of QSE from the frontier market to secondary emerging market could boost inflows in September to $550 million.
Qatar, which will be removed from FTSE frontier index in September 2016, will be given the status of secondary emerging market in two tranches. The first tranche of 50 percent will be implemented in conjunction with the semi-annual review of FTSE in September 2016 and the second 50 percent tranche will be implemented in conjunction with the March 2017 semi-annual review.
The FTSE emerging index provides investors with a comprehensive means of measuring the performance of the most liquid companies in the emerging markets.
Following its September 2015 annual review, FTSE announced Qatar will be promoted from Frontier to Secondary Emerging since the market meets the criteria required for the upgrade.
