Sri Lanka S&P SL20 index adds construction, telco firms
(EconomyNext) – Access Engineering, a fast-growing construction firm, Sri Lanka Telecom and People’s Leasing & Finance have been included in the S&P SL20 index, which tracks the top 20 largest and most liquid stocks on the Colombo Stock Exchange.
It announced the changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2014 annual index rebalance will be effective from December 22, 2014.
Asian Hotels & Properties, C T Holdings, and Hayleys will be removed from the S&P Sri Lanka 20 index as they no longer qualify for index inclusion, it said.
"This index is particularly designed to create index tracking funds such as index funds and Exchange Traded Funds (ETFs)," said Rajeeva Bandaranaike, Chief Executive of the Colombo Stock Exchange.
"The S&P Sri Lanka 20 index is a more realistic measure as it uses a Public Float Adjusted Market Capitalization, to measure the size of the company; in line with global standards."
To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalization of 500 million rupees, a six-month average daily value traded of one million rupees, 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 constituents are weighted by float-adjusted market capitalization, subject to a single stock cap of 15 percent, which is employed to reduce single stock concentration.
All stocks in the S&P Sri Lanka 20 are classified according to the Global Industry Classification Standard, which was co-developed by S&P Dow Jones Indices and MCSI and is widely used by market participants throughout the world.