By Amr Fouad

Dubai-Mubasher: The relative weights of several Dubai-listed real estate companies, mainly Emaar, were lowered after DAMAC Real Estate joined the equity market.

Analysts told Mubasher the periodic review of the index constituents is “positive” and “significant”, amid the changes in stock prices.

The continued review that follows new listings curbs the power of major stocks in favor of new ones, which helps balance the index, the analysts added.

Dubai Financial Market (DFM) had announced adding DAMAC stock to its benchmark and the real estate sector starting Sunday, February 22, 2015.

Thus, the total number of the constituents of the benchmark DFMGI will rise to 35.

Also, the overall number of shares in listed companies will amount to 5 billion, while free float will reach 25%, while the number of listed shares in the index sample will amount to 1.25 billion, or 2.87% of the index relative weight.

Adding DAMAC to the benchmark led to a reduction in weights of real estate companies, mainly Emaar Properties whose weight was brought down by 1% to 16.05%.

However, Emaar stock has maintained its leading position among the index constituents in terms of relative weight. DIB remained in the second rank, with a marginal decline to 15.5%.

In addition, Arabtec weight was lowered from 8.24% to 7.78%, while UP’s weight fell from 3.67% to 3.01% and Deyaar’s from 3.01% to 2.54%.

Translated by Sayed Abdel Rahman

Photo Credit: Arabianeye-Reuters