Qatar Exchange (QE) has launched a number of new equity indices to complement the existing QE Index. The new indices will be live from 1 April 2012.
A total return version of the QE index will be disseminated in real-time; measuring price performance and income from dividends, thus representing the total return earned in a portfolio tracking the underlying price index. QE will also introduce All Share and sector indices, a series that provides investors with an overall market benchmark and enhanced tools to evaluate sector performance in real-time.
In line with the industry sector indices, statistical and trading reports at Qatar Exchange will reflect seven primary sectors: Banks & Financial Services; Industrials; Transportation; Real Estate; Insurance; Telecoms; and Consumer Goods & Services.
The new sector classification is based on industry standards and best practices.
Andre Went (pictured), CEO of Qatar Exchange, says: These new indices form part of a strategic goal to offer investors exceptional market visibility. The dividend yields for listed companies are some of the highest globally and we expect the QE Total Return index to be tracked extensively. Our sector indices will offer investors the ability to dissect industry performance in real-time, this will prove an effective tool in generating trade ideas or investment strategies’
Mohsin Mujtaba, Director Product and Market Development at Qatar Exchange, says: “The changes to the index methodology and launch of new indices is the first step towards further product development in the Qatari market. New products like ETFs require availability of investable benchmark indices in the market which QE will be introducing next month. We also intend to launch ETFs before the end of this year.”
QE introduced the new index methodology in May 2010 and has embarked on a number of initiatives since then to enhance the visibility of the market performance and provide investors tools to increase liquidity in the market. Introduction of new products such as Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are also part of the overall development strategy of the Qatari market.