Dow Jones Indexes and the Bahrain Stock Exchange (BSE) have teamed up to launch the Dow Jones Bahrain Index.
The new index is a broad benchmark index that represents all tradable stocks listed at the Bahrain Stock Exchange.
The five biggest companies by full-market capitalization included in the index which currently comprises 32 components, are Bahrain Telecommunications Co. (BD 1,530 million), Ahli United Bank (BD 803 million), Investcorp Bank S.S (BD 603 million), National Bank of Bahrain (BD 567 million) and Gulf Finance House EC (BD 506 million).
The Dow Jones Bahrain Index was developed to meet increasing demand for a transparent and competitive index whose methodology was in line with a global index family. It will be calculated in both the Bahraini dinar and the US dollar, allowing easy comparison of the performance of the Bahrain stock market with other Dow Jones GCC market indexes, as well as to more than 40 equity markets globally. The index is investable and is designed to serve as an underlying for investment products such as mutual funds, ETFs and other investable products.
"With the launch of the Dow Jones Bahrain Index, Dow Jones Indexes becomes the first major global index provider to cover the Bahrain equities market," said Lars Hamich, managing director of STOXX Ltd, the joint venture responsible for Dow Jones Indexes' business development in Asia, Europe and the Middle East. "The cooperation with the Bahrain Stock Exchange is an important step in solidifying our role as the leading index provider in the GCC region. We are optimistic that this index will help to raise the profile of this ambitious and upcoming financial market as an investment destination for international investors."
Speaking about the launch, Fouad Rashid, director of the Bahrain Stock Exchange, said: "We are delighted with the official launch of the Dow Jones Bahrain Index, and we are also happy to be the first stock exchange in the region that has a joint index with Dow Jones as a global index provider with a sound international reputation. We believe that this index will contribute to enhancing the position of the kingdom of Bahrain as an international financial centre by attracting more investments.
"Announcing this index will help to enlighten the opportunities available for investors from all over the world at the Bahrain Stock Exchange, which allows 100 per cent non-Bahraini ownership in the Bahraini equities market, and enforces no tax on capital gain or on dividends,' he added. "We hope that this step will encourage local, regional and international financial institutions to benefit from this index to gain more credibility and wider exposure for their products among potential international clients."
The Dow Jones Bahrain Index is a composite index of all stocks listed on the Bahrain Stock Exchange. Eligible companies must be domiciled and headquartered in Bahrain, and the company's stock must have its primary listing on the Bahrain Stock Exchange. The index is weighted based on full-market capitalization. Daily historical index values are available back to Dec. 31, 1999.