Softlogic Life added to S&P SL20 Index

The Colombo Stock Exchange (CSE) yesterday announced a change in the S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2022 March ad-hoc index rebalance due to the amalgamation of Commercial Leasing and Finance PLC with LOLC Finance PLC after which  Commercial Leasing and Finance PLC would cease to exist.

Effective 31 March Commercial Leasing and Finance PLC (CLC.N0000) is out and Softlogic Life Insurance PLC (AAIC.N0000) has been added.

The S&P SL20 index includes the 20 largest companies, 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 capitalization, subject to a single stock cap of 15%, which is employed to reduce single stock concentration. 

The S&P SL20 index 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.

To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalization of 500 million Sri Lankan rupees, a six-month median daily value traded of Rs. 0.25 million and have positive net income over the 12 months prior to the rebalancing reference date.