An index is a numerical metric that measures the performance of a particular market by aggregating the prices of a representative basket of stocks. These indices are computed as the weighted average of constituent stock prices, with the weighting determined by the chosen methodology. While various methodologies exist, a common approach involves weighting stocks based on their market capitalization.
Regular reviews are conducted to ensure that the selected stocks and their weightings accurately represent the underlying market. Indices play a crucial role in analyzing investment strategies and serve as a benchmark for portfolio performance, particularly for professional investors such as pension funds, insurance firms, and other institutional investors.
Retail investors also utilize indices as benchmarks to assess the performance of their chosen stocks. Indices that specifically measure the performance of a particular industry sector provide additional tools for efficient stock selection. This enables investors to make informed decisions in their stock-picking strategies, contributing to a more nuanced understanding of market dynamics and performance.
The index provides exposure to companies listed on the Qatar Stock Exchange (QSE) that align with our responsible and sustainable Islamic investment principles. The QE Al Rayan Islamic index constituents undergo a review process twice yearly, specifically on 1st of April and 1st of October. During these reviews, factors such as market capitalization and daily trading liquidity are considered to determine the index weight of each security. This careful evaluation ensures that the index accurately reflects our commitment to responsible and sustainable investment practices, aligning with the values and criteria integral to Islamic financial principles.
The index constituents are the 22 securities listed below (Based on the latest update on 1st of October, 2023):
Source: Qatar Stock Exchange, Bloomberg, Al Rayan Investment (2023)
