JEDDAH, 13 March 2005 — Global Investment House (Global), a leading Kuwait-based investment banker, has introduced two new indices — the “Global GCC Large Cap 30 index” and the “Global GCC Investable 100 Index”. The indices are part of the Global series of indices leveraging the success of the Global Kuwait Stock Exchange (KSE) Indices.
According to Global, the two indices seek to bring value-added services to help create a regional capital market for the Gulf Cooperation Council (GCC) countries. Hence, the two new indices were built to track the performance of the liquid companies in the region.
Omar El-Quqa, executive vice president, said: “The indices will contribute deeply to the development of the region’s exchanges, making the indices an effective portfolio. Furthermore, the indices would act as a benchmark for portfolio managers interested in such stocks, in evaluating their performance.”
The Global GCC Large Cap 30 Index is a 30-stock index of leading GCC stocks. The index comprises the largest market capitalization stocks in the region. Global GCC Large 30 Index is unique in that it is the only regional blue chip index covering all GCC stock markets. The selection list is defined as the 30 current component stocks plus all non-component stocks traded on the major exchanges of the GCC countries, ranked by market capitalization. Constituents of the index will be reviewed monthly in order to ensure reflection of market development.
Global GCC Investable 100 Index is a 100-stock index of leading GCC stocks, which are open to all GCC investors. The index is unique in that it is the only investable blue chip regional index, and it covers all GCC stock markets inclusive. The selection list is defined as the 100 current component stocks plus the non-component (investable) stocks, ranked by market capitalization. Constituents of the Global GCC Investable 100 Index will be reviewed and ranked on a quarterly basis.
Moreover, the market capitalization of the companies in both indices are converted into US dollars, using the applicable exchange rates.
El-Quqa explained that the indices are maintained according to a transparent methodology that is consistent with that of the Global KSE Indices, .ie. a 100 percent market capitalization weighted index following the formulae of the International Finance Corporation (IFC).
By the end of December 2004, market capitalization of the companies in the Global GCC Investable 100 Index stood at $296.9 billion, versus a total market capitalization of $522.8 billion of the entire GCC region. Global GCC Investable 100 Index represents approximately 57 percent of the GCC total market capitalization.
Meanwhile, market capitalization of the constituents in the Global GCC Large Cap 30 Index stood at $366.4 billion, representing 70 percent of the region’s total market capitalization.
Global GCC Large Cap 30 Index and Global GCC Investable 100 Index are calculated during trading days (Saturday to Thursday). The performance of the indices can be tracked also live on Reuters’ screens, on Bloomberg’s pages, or by logging onto www.Globalinv.net.
