Stock markets in the United Arab Emirates and Qatar rose in early trade on Sunday after index compiler MSCI increased several local stocks’ weightings in its emerging markets index during a semi-annual review.
Qatar’s main index rose 0.5 per cent and drilling rig provider Gulf International Services, which MSCI said will join the index at the end of November, jumped 2.7 per cent.
Heavyweights Qatar National Bank and Industries Qatar added 1.0 and 1.1 per cent respectively. The two names were among the stocks whose weightings MSCI cut when it upgraded the UAE and Qatar to emerging market status in May.
In its review, published at the end of last week and to take effect at the end of this month, MSCI removed a 0.5 “adjustment factor” for a number of stocks, citing the relaxation of foreign ownership restrictions.
Doha Bank and Commercial Bank of Qatar, up 1.0 and 0.4 per cent respectively, also were on the list.
Dubai’s index added 0.5 per cent as Emaar Properties rose 1.0 per cent and Dubai Islamic Bank edged up 0.3 per cent. The two stocks’ weightings also increased because of the removal of the adjustment factor.
Abu Dhabi’s benchmark climbed 1.5 per cent on the back of First Gulf Bank, which jumped 5.1 per cent after the index weighting increase.