Global launches two new indices to track the performance of GCC stocks

The indices are part of the Global series of indices leveraging the success of the Global Kuwait Stock Exchange (KSE) Indices. We have taken it upon ourselves to bring value-added services to help create a regional capital market for the GCC countries. Hence, the two new indices were built to track the performance of the liquid companies in the region.

Mr. Omar El-Quqa, Executive Vice President, stated that the indices will contribute deeply to the development of the region's exchanges, by generating interest from regional investor broad market presentation of the largest companies in the region, making the index 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 (including Saudi Arabia). 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 and buffered 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 capitalizations of the companies in both indices are converted into US Dollars (before the buffering takes place), using the applicable exchange rates. Thus, the market capitalizations of the indices are also stated in US Dollars. (REVIEW THIS PARAGRAPH)

Mr. El-Quqa explained that the indices are maintained according to a transparent methodology that is consistent with that of the Global KSE Indices (i.e. a 100% market capitalization weighted index following the formulae of the International Finance Corporation (IFC)).

The base value of both indices is 100, as on December 31, 1999. Adjustments according to corporate actions are made as they occur.

By the end of December 2004, market Capitalization of the companies in the Global GCC Investable 100 Index stood at US $296.9bn, versus a total market capitalization of US $522.8bn of the entire GCC region. Global GCC Investable 100 Index represents approximately 57% of the GCC total market Capitalization. Meanwhile, market capitalization of the constituents in the Global GCC Large Cap. 30 Index stood at US $366.4, representing 70% of the region's total market capitalization.