QE Index Developments
Press Briefing
March, 2012
www.qe.com.qa
QE TOTAL RETURN INDEX
LAUNCH APRIL 1ST, 2012
Description:
QE index measures only price performance of component stocks. Qatar Exchange will calculate a
total return version of the index that also reflects income received by way of dividend payments on
the 20 stocks. The methodology reinvests the dividends in the index on the day a security is quoted
ex dividend (day after the AGM).
A total return index represents the total return earned in a portfolio that tracks the underlying price
index and reinvests dividend income in the overall index, not in the specific stock paying the
dividend.
3
Factsheet
Factsheet
QE Index Total Return
Full name
Qatar Exchange Index Total Return
Index Type
Total Return Divisor Index
Index Governance Structure
Qatar Exchange (QE)
Eligible stocks
Selection
Equity securities listed and available for trading on the Qatar Exchange
for more than six months. QE index constituents must have recorded
annual share velocity greater than 5% and have individual ‘limit holdings’
of no less than 1%
Index consists of the top 20 company ranked by free-float market
capitalization and daily average traded value
Number of constituents
20
Weighting
Capped Free-float market capitalization. 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 (note
that the 15% will take effect at next semi annual rebalance date – April
1st 2012)
Review of composition
Semi-annual
Effective date of the review
Rebalance is effective first trading day of April and October
Calculation frequency
Real time
Base date
January 3rd, 2007
Base level
7123.53
Historic data available since
January 3rd, 2007
Derivatives and Linked products
None
ISIN code
QA000A1MADH0
Mnemonic code
TBD
Bloomberg code
TBD
Reuters code
TBD
Launch date
April1st 2012
4
QE Index vs QE Total Return Index
INDICATIVE
16000.00
14000.00
11156.03 index points (56.61 %
total return since first day of
2007)
12000.00
10000.00
8779.03 index points (23.24%
price return)
8000.00
Official QE index
6000.00
QE TR Index
4000.00
2000.00
0.00
1/3/2007
1/3/2008
1/3/2009
1/3/2010
1/3/2011
5
ALL SHARE INDEX
LAUNCH DATE: APRIL 1ST, 2012
Description:
Qatar Exchange will also offer an ‘all share’ index that covers all listed stocks with share velocity greater
than 1%. Velocity is the proportion of total shares that have changed hands in one year. The All Share
index will act as an overall benchmark for the market, with over double the number of component stocks
versus those included in the QE index.
The All Share will also act to support underlying sectors indices. Constituent stocks of the All Share index
will be allocated to one of 7 industry sector indices. These indices will provide a framework that allows
investors to perform real-time sector analysis.
7
Factsheet
Factsheet
QE All Share & Sectors
Full name
Index Type
Qatar Exchange All Share
Total Return Divisor Index
Index Governance Structure
Qatar Exchange (QE)
Selection
Equity securities listed and available for trading on the Qatar Exchange for more than six months, with a
annualised share velocity ratio greater than 1%
Index consists of all eligible stocks.
Number of constituents
Not capped
Weighting
Review of composition
Free-float market capitalization
Semi-annual
Effective date of the review
Rebalance is effective 1st trading day of April and October
Calculation frequency
Base date
Real time
3rd January 2007
Base level
1,000
Historic data available since
3rd January 2007
Derivatives and Linked products
None
Eligible stocks
All Share Index
QA000A1MADJ6
All Share Banks & Financial Services
Index
QA000A1MADK4
ISIN code
Mnemonic code
Bloomberg code
Reuters code
Launch date
All Share Industrials Index
QA000A1MADL2
All Share Transportation Index
QA000A1MADM0
All Share Real Estate Index
QA000A1MADN8
All Share Insurance Index
QA000A1MADP3
All Share Telecoms Index
QA000A1MADQ1
All Share Consumer Goods &
Services Index
TBD
TBD
TBD
April 1st 2012
QA000A1MADR9
8
INDICATIVE
All Share Index & Sectors (min velocity 1%)
Weight in All Share
Telecoms
5.44%
Transportation
7.59%
Real Estate
6.35%
Insurance
3.61%
Banks & Financial Services
51.72%
Industrials
21.08%
Consumer Goods & Services
4.22%
9
All Share Index & Sectors (min velocity 1%)
Name
Sector
Weight in sector
Weight in All Share
Free Float Cap (Riyals)
QATAR NATIONAL BANK
MASRAF AL RAYAN
QATAR ISLAMIC BANK
COMMERCIAL BANK OF QATAR QSC
DOHA BANK QSC
QATAR INTERNATIONAL ISLAMIC
AL KHALIJI BANK
AL AHLI BANK
NATIONAL LEASING
DLALA HOLDING
QATAR & OMAN INVESTMENT CO
ISLAMIC HOLDING GROUP
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
Banks & Financial Services
37.07%
16.01%
12.59%
12.21%
7.66%
4.94%
4.73%
3.19%
1.16%
0.22%
0.15%
0.07%
19.17%
8.28%
6.51%
6.32%
3.96%
2.56%
2.45%
1.65%
0.60%
0.11%
0.07%
0.04%
48,314,549,000
20,862,435,000
16,409,922,300
15,918,225,876
9,981,161,379
6,443,768,052
6,170,898,000
4,159,837,668
1,517,479,600
285,180,000
189,000,000
88,725,000
130,341,181,875
QATAR FUEL CO
SALAM INTERNATIONAL INVESTME
AL MEERA CONSUMER GOODS CO
ZAD HOLDING CO
MEDICARE GROUP
QATAR MEAT & LIVESTOCK CO
QATAR CINEMA & FILM DISTRIB
QATAR GERMAN CO FOR MEDICAL
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
Consumer Goods & Services
57.45%
11.79%
10.50%
5.32%
5.31%
5.01%
3.84%
0.77%
2.42%
0.50%
0.44%
0.22%
0.22%
0.21%
0.16%
0.03%
6,107,360,000
1,253,015,089
1,116,629,000
565,429,455
564,261,061
532,850,500
408,242,532
82,078,920
10,629,866,557
INDUSTRIES QATAR
QATAR ELECTRICITY & WATER CO
AAMAL CO
MANNAI CORPORATION
QATAR NATIONAL CEMENT CO
GULF INTERNATIONAL SERVICES
QATAR INDUSTRIAL MANUFACTUR
AL-KHALIJ HOLDING CO
Industrials
Industrials
Industrials
Industrials
Industrials
Industrials
Industrials
Industrials
41.30%
20.70%
14.81%
6.35%
5.88%
4.25%
3.38%
3.34%
8.71%
4.36%
3.12%
1.34%
1.24%
0.90%
0.71%
0.70%
21,945,000,000
11,000,480,000
7,868,592,000
3,371,385,600
3,121,654,704
2,256,341,199
1,796,640,000
1,772,514,525
53,132,608,028
QE stocks - weighting within respective sector
10
INDICATIVE
All Share Index & Sectors (min velocity 1%)
Name
Sector
Weight in sector
Weight in All Share
Free Float Cap (Riyals)
QATAR INSURANCE CO
QATAR GENERAL INSURANCE & RE
QATAR ISLAMIC INSURANCE
AL KHALEEJ TAKAFUL GROUP
DOHA INSURANCE CO
Insurance
Insurance
Insurance
Insurance
Insurance
54.40%
24.97%
8.62%
6.35%
5.66%
1.96%
0.90%
0.31%
0.23%
0.20%
4,951,294,384
2,272,901,621
784,875,000
578,219,796
514,775,000
9,102,065,801
BARWA REAL ESTATE CO
UNITED DEVELOPMENT CO
MAZAYA QATAR REAL ESTATE DEV
Real Estate
Real Estate
Real Estate
72.75%
22.39%
4.86%
4.62%
1.42%
0.31%
11,642,302,878
3,583,780,200
777,876,000
16,003,959,078
QATAR TELECOM (QTEL) Q.S.C
VODAFONE QATAR
Telecoms
Telecoms
81.37%
18.63%
4.42%
1.01%
11,147,840,141
2,553,108,000
13,700,948,141
QATAR GAS TRANSPORT(NAKILAT)
QATAR NAVIGATION
GULF WAREHOUSING COMPANY
Transportation
Transportation
Transportation
50.64%
41.69%
7.67%
3.84%
3.16%
0.58%
9,684,781,000
7,972,924,554
1,466,464,524
19,124,170,078
35 of the 42 listed companies paid or have dividends in 2011. To highlight the depth of
market and yields available, the All Share’s primary calculation method will be total
return. Historical data available back to 2007. Existing sectors based upon QE index
components to be phased out during 2012
11
INDICATIVE
All Share Index & Sectors (min velocity 1%) – Total Return
4,000.00
3,500.00
3,000.00
All Share
2,500.00
Banks
Consumer
Industrials
2,000.00
Insurance
Real Estate
1,500.00
Telecoms
Transport
1,000.00
500.00
01/03/2007
01/02/2008
12/30/2008
12/29/2009
All Share & Sector performance Jan 2007 to December 2011. Total Return
12/29/2010
12/28/2011
12
METHODOLOGY CHANGES
EFFECTIVE APRIL 1ST, 2012
Description:
QE index measures the 20 largest and most liquid stocks in the Qatar market. On the first trading day of
April and October the index is rebalanced, determining whether existing constituents continue to fulfill
index criteria.
All listed companies are ranked by giving free float market capitalization a 50% weight (or consideration)
and average daily value traded also 50% weight. Companies with velocity less than 5% are excluded from
the review, as are companies whereby a single shareholder can only own less than 1% of outstanding
shares.
The 20 constituents of the QE index for the following 6 months are determined. 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.
14
Methodology Changes:
Add following sentence to Article 6.3 Index Weight Capping – 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.
Amend Article 6.1 of the Index Methodology to read:
The index is reconstituted semi-annually on the first trading day of April and October based on a twelve
month observation ending last trading day respectively in February and August.
Add following sentences to Article 6.2:
Selection of constituents – If any number of constituents were to score equally using the two factors
described above, then a third factor of annual velocity would be used to choose the qualifying
constituents in the index.
15
Indicative QE Index rebalance –
maximum weight of any component capped at 15%
Symbol
QNBK
IQCD
MARK
QIBK
CBQK
QTEL
BRES
QEWS
QGTS
DHBK
QNNS
KCBK
QIIK
QATI
UDCD
VFQS
GISS
KHCD
NLCS
SIIS
Free Float Cap
45,008,816,700
20,559,000,000
18,053,310,000
15,670,210,500
15,368,668,078
11,488,292,645
11,409,068,096
10,377,960,000
9,623,940,000
9,389,454,464
8,431,497,992
6,181,680,000
5,906,787,381
5,104,427,200
2,926,461,038
2,607,213,600
2,421,900,826
1,748,233,504
1,318,915,780
1,193,842,048
Initial Weight
21.98%
10.04%
8.82%
7.65%
7.50%
5.61%
5.57%
5.07%
4.70%
4.58%
4.12%
3.02%
2.88%
2.49%
1.43%
1.27%
1.18%
0.85%
0.64%
0.58%
Free Float Cap QNB
Capped Weight
capped
28,382,550,611
15.00%
20,776,322,868
10.98%
18,220,831,265
9.63%
15,796,383,943
8.35%
15,490,027,446
8.19%
11,556,070,441
6.11%
11,475,913,604
6.07%
10,433,261,421
5.51%
9,671,492,633
5.11%
9,434,716,693
4.99%
8,467,990,978
4.48%
6,201,290,250
3.28%
5,924,691,663
3.13%
5,117,796,295
2.71%
2,930,854,106
1.55%
2,610,700,322
1.38%
2,424,909,437
1.28%
1,749,801,025
0.92%
1,319,807,901
0.70%
1,194,572,979
0.63%
At each review period a components weight is capped at 15%. Any excess weight is distributed
proportionately amongst other members. Between review periods weights may fluctuate with price
performance. Corporate action ratios are applied to the number of shares established at the review period.
Data shown is from Oct 2011 review
16
Overall effect of 15% cap on QE Index
9750.00
9250.00
8750.00
QE PX CAP
8250.00
QE PX
7750.00
7250.00
No major impact on the performance of the index
Based on a 15% cap applied to scheduled rebalance of 2010 (Sept 30th) the capped QE index finishes 2011 at
8742.6 vs QE Index at 8755.69
17