JEDDAH, 14 March 2006 — BMG Financial Advisors (BMG) has announced the creation of BMG Saudi Index, which will be officially launched in Riyadh on April 1.
The main features of the index include investability, total return index and liquidity.
BMG has decided to invest time and money to develop such an index to benefit Saudi investors by adopting a consistent, globally accepted methodology to calculate such an index.
“The main aim of the index is to give investors a more relevant benchmark to measure the performance and help them take better investment decisions,” BMG’s Chief Executive Officer Basil Al-Ghalayini told Arab News.
BMG is currently backdating its index to provide three years of historical data to allow for statistical and return analysis as well as technical analysis. Index constituents are selected for inclusion based on genuine trading liquidity and are reassessed quarterly.
The index will include the top 30 most liquid stocks in the Saudi market. The US dollar-based index will be weighted according to the market cap of individual companies but excluding government ownerships. Tadawul will be the official source for all corporate actions.
