DUBAI, Oct 3 (Reuters) - Dubai Financial Market (DFM)
said on Monday it planned to adopt a new methodology
for its main equities indices, which will come into effect in
the fourth quarter.
The Dubai bourse's general index, Sharia index and sector
indices, will be calculated by S&P Dow Jones Indices, it said in
A key improvement among the changes is a limit on the
weighting of a listed company to 10% from 20%, which should
result in a larger representation of companies on the DFM's
benchmarks, it said.
The Dubai bourse said the index calculation will be based on
actual free float adjusted market capitalisation, and that the
indices will be rebalanced on a quarterly basis, from
The bourse plans to align its sectors with an industry
classification standard which is followed by institutional
clients, it said.
DFM will have seven sectors: financials, industrials, real
estate, utilities, communication services, materials and
The bourse has invited market participants for consultations
on the index methodology ahead of possible changes, with the
revised indexes to be launched in Q4, it said.
The changes follow a flurry of initial public offerings from
state-linked entities this year, part of a government programme
intended to attract investors and boost activity on the stock
Toll-road operator Salik , which listed last
week, raised 3.735 billion dirhams ($1.02 billion) by selling a
24.9% stake in its initial public offering (IPO), giving the
company a market value of 15 billion dirhams.
Dubai business park operator TECOM Group in June
raised 1.7 billion dirhams ($463 million) through the sale of
625 million ordinary shares, equivalent to 12.5% of the company
in an IPO.
Dubai's Water and Electricity Authority, known as DEWA, in
April raised over $6 billion for its IPO, the region's biggest
since Saudi Aramco.
(Reporting by Hadeel Al Sayegh, editing by Ed Osmond)