Al khaliji and Medicare Group will replace Alijarah Holding and Widam Food Company in 20-stock benchmark QE Index of the Qatar Exchange with effect from April this year.
The other barometers such as the All Share Index and the Al Rayan Islamic Index have maintained their status-quo in terms of constituents. But the Islamic index weightings would be restructured on the basis of ranking of a company's liquidity adjusted capitalisation.
The other 18 entities in the QE Index will continue to be QNB, Industries Qatar, Ooredoo, Masraf Al Rayan, Commercial Bank, Qatar Islamic Bank (QIB), Qatar Electricity and Water, Doha Bank, Nakilat, Barwa, Milaha, Qatar Insurance, United Development Company, Gulf International Services, International Islamic, Qatari Investors Group, Vodafone Qatar and Al Meera.
A market analyst said Mesaieed Petrochemical Holding, although it has higher volumes, did not figure in the list for lack of long trading history.
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 maximum weight a single stock can hold within QE index as of the rebalance date is 15%. If during the index review any stock is found to exceed this weight, then the stock's market value is capped and any excess weight is distributed proportionately among the remaining index constituents.
The bourse has seven sectors - banks and financial services, insurance, industrials, real estate, telecom, transportation and consumer goods and services in the 'All Share Index'.
Al Rayan Islamic Index constituents remain unchanged and they are IQ, Masraf Al Rayan, Barwa, QIB, UDC, International Islamic, Qatari Investors Group, Vodafone Qatar, Alijarah Holding, Gulf Warehousing, Al Meera, Qatar National Cement, Medicare Group, Widam Food, Mazaya Qatar, Zad Holding, Qatar Islamic Insurance and Qatar Industrial Manufacturing.
© Gulf Times 2014