CSE announces changes to S&P Sri Lanka 20 Index
View(s):The Colombo Stock Exchange (CSE) announced the changes in S&P Sri Lanka 20 Index constituents made by S&P Dow Jones Indices at the 2015 annual index rebalance, a CSE press release said.”S&P Dow Jones Indices has announced that effective from the December 21, 2015 (after the market close of December 18, 2015), Bukit Darah PLC, Carson Cumberbatch PLC will be removed from the S&P Sri Lanka 20 index as they no longer qualify for index inclusion.”
Replacements will be Asiri Hospital Holdings PLC, Ceylinco Insurance PLC, Ceylon Cold Stores PLC, Hemas Holdings PLC, the release added.
“The index includes the largest 20 stocks, by total market capitalisation, 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 per cent, which is employed to reduce single stock concentration.”
At the S&P Sri Lanka 20 which has been designed in accordance with international practices and standards, all stocks are classified according to the Global Industry Classification Standards (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 capitalisation of 500 million Sri Lankan rupees (Rs), 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,” the release said.