The National Bank of Dubai (NBD) has launched two indices covering United Arab Emirates (UAE) equities.
The NBD Composite Index (NBDCI) and the NBD Sensitive Index (NBDSI) are the first indices created by NBD, the UAE’s largest bank by market capitalization. As such they will add significant visibility and credibility to the UAE’s capital markets, helping to stimulate vital investment in local companies, stated a bank press release.
The NBDCI will act as a broad indicator of UAE equity market movements, covering 39 stocks weighted by market capitalization on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Market (ADSM). The index will include three sub-indices in strategic sectors: banking, services and insurance.
The NBDSI will be a more dynamic index, covering 15 highly liquid companies. It will include two sub-indices: banking and services. The NBDSI will be revised on a regular basis to reflect changes in liquidity and trading patterns on the DFM and ADSM.
As well as acting as high-profile indicators of stock market movements, NBDCI and NBDSI can be used as benchmarks for a range of investment products such as index funds. The NBDCI and the NBDSI are the first in a series of indices that NBD plans to roll out in the coming months. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
