Sunday 4 December 2011

Blue-chip Arab index to aid local markets - The National

Standard & Poor's is set to launch an index of leading blue-chip stocks in the Arab world, a move that may help to tempt back foreign investors fleeing instability in parts of the region.

The index will aim to attract exchange-traded funds (ETFs), which track such indexes around the world and account for about US$1.5 trillion (Dh5.5 tn) in global equity investment.

"We are building a benchmark now for funds to invest in the region when the economy improves and oil prices pick up," said Fadi Khalaf, the secretary general of the Arab Federation of Exchanges, which counts 16 stock markets as its members including all GCC states, and which is helping to establish the index.

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