Press Room

27/12/2007 Al Mal Capital announces the quarterly rebalance (first quarter of 2008) of Al Mal UAE FALCON Index
Posted on 27 Dec 2007

Al Mal Capital PSC, the UAE Investment Company, today announced the quarterly rebalance Al Mal UAE FALCON Index (Following All Liquid Company Names) for the first quarter of 2008.

In line with the Index rules, Al Mal Capital will rebalance the Index on the close of the business on the last Thursday in March, June, September and December taking into account the trading data of the prior 100 trading days.

The Al Mal UAE FALCON Index is a unique benchmark designed to provide a real-time, liquid and tradable representation of the performance of the UAE equity markets and due to its characteristics as a tradable basket, will be used as a practical benchmark for investors in the UAE, as well as international investors from the GCC, Europe, Asia and North America.

Al Mal Capital is a leading Dubai-based Investment Company, licensed and regulated by the UAE Central Bank, with paid-up capital of Dh333 million. The Company provides its prestigious list of clients with Investment Banking, Brokerage and Asset Management services.

Index Characteristics    

The Al Mal UAE FALCON Index accounts for the special characteristics of the UAE equity markets: a significant portion of market liquidity and trade linked to a series of companies with large market capitalisation, contrasted with closely-held positions in some companies of size, rendering them difficult to trade. The FALCON addresses this anomaly by identifying the stocks that are both largest and most liquid, as it’s rational for inclusion.

The index contains 20 members from both the ADSM and DFM that as of the current rebalance account for over 77% of 100 day average traded value on both exchanges and for over 41% of combined market capitalisation as of 27^th December, 2007.

The following companies that were previously in the index no longer have a weighting:  Tabreed, Abu Dhabi Islamic Bank. They will be replaced with the following: Air Arabia, Emirates Integrated Telecommunication Company.

The weightings are based on (1) Average traded value; (2) market capitalisation; and (3) length of time that a company has been listed. Individual company weightings are capped at 25% and sectors are capped at 35%.