What is an index?
An index is a numerical value that measures the performance of a given market through aggregation of the prices of a representative basket of stocks. Indices are calculated as weighted average of the constituent prices, the weight depends on methodology but the majority of indices are weighted by market capitalization. Reviews take place on a regular basis to ensure selected stocks as well as their weightings are correctly representing the underlying market. Indices are produced primarily for use in analyzing investment strategies and as a measure of portfolio performance for professional investors such as pension funds, insurance companies and other institutional investors. Retail investors use indices as a benchmark against which to compare the performance of chosen stocks. Indices which measure the performance of a specific industry sector provide further tools that allow efficient 'stock picking'.
The QE Al Rayan Islamic index :
The index offers exposure to companies listed on the Qatar Stock Exchange (QSE) which meet our ethical, responsible and sustainable investment principles. Constituents of the QE Al Rayan Islamic index are reviewed on April 1st and October 1st of each year. The index weight of each security depends on several factors including market capitalisation and daily trading liquidity.
QATAR ISLAMIC BANK
MASRAF AL RAYYAN
Intl. Islamic Bank
Electricity & Water
United Dev. Company
National Cement Co.
Gulf warehousing Co
Ind. Manf. Co.
Source: Qatar Stock Exchange Website
Source: Qatar Stock Exchange, Bloomberg, Al Rayan Investment