Tuesday, 17 December 2013 02:24
The Colombo Stock Exchange (CSE) has announced the changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2013 annual index rebalance as follows.
S&P Dow Jones Indices announced that effective from 23 December 2013 (after the market close of 20 December 2013), Sri Lanka Telecom PLC and Aitken Spence Hotel Holdings PLC will be removed from the S&P Sri Lanka 20 index as they no longer qualify for index inclusion. Replacements will be Lanka Orix Leasing Co PLC and The Lion Brewery Ceylon PLC.
The index includes the largest 20 stocks, by total market capitalization, listed on the CSE that meet minimum size, liquidity and financial viability thresholds. The constituents are weighted by float-adjusted market capitalisation, subject to a single stock cap of 15%, which is employed to reduce single stock concentration.
The S&P Sri Lanka 20 has been designed in accordance with international practices and standards. All stocks are classified according to the Global Industry Classification Standard (GICS), which was co-developed by S&P Dow Jones Indices and MCSI and is widely used by market participants throughout the world.
Colombo Stock Exchange CEO Rajeeva Bandaranaike said: “Having launched the Index in June 2012, I am happy to see that the S&P Sri Lanka 20 index has gained acceptance among stakeholders. Since the index is designed to be used for index linked trading products the acceptance it has gained is important. I am confident that the index will further enhance the visibility of our market among the global investor community.”
To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalisation of Rs. 500 million, a six-month average daily value traded of Rs. 1 million, have been traded at least 10 days of each month for the three months prior to the rebalancing reference date, and have positive net income over the 12 months prior to the rebalancing reference date.
For information, including the complete methodology, please visit: www.spindices.com.
FT Quick Take
Effective from 23 December 2013 the stocks in the S&P Sri Lanka 20 are:
Aitken Spence PLC
Asian Hotels & Properties PLC
Bukit Darah PLC/The
Cargills (Ceylon) PLC
Carson Cumberbatch PLC
Ceylon Tobacco Company PLC
Chevron Lubricants Lanka PLC
Commercial Bank of Ceylon PLC
CT Holdings PLC
Dialog Axiata PLC
Distilleries Company of Sri Lanka PLC
Hatton National Bank PLC
John Keells Holdings PLC
Lanka Orix Leasing Company PLC
Lion Brewery Ceylon PLC/The
National Development Bank PLC
Nestle Lanka PLC
Sampath Bank PLC