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
- DFCC Bank
- Dialog Axiata PLC
- Distilleries Company of Sri Lanka PLC
- Hatton National Bank PLC
- Hayleys 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
