The Colombo Stock Exchange (CSE) has announced changes to the S&P SL 20 index constituents made by S&P Dow Jones Indices at the 2019 year-end index rebalance.
The exclusions are: HNB Assurance PLC, Melstacorp PLC and Softlogic Holdings PLC. The inclusions are: LOLC Finance PLC, Overseas Realty (Ceylon) PLC and Tokyo Cement Co. (Lanka) PLC.
The exclusions and inclusions as announced by S&P Dow Jones Indices are effective from December 23, 2019.
The S&P SL 20 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 percent, which is employed to reduce single
The S&P SL 20 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 Rs.500 million, a six-month median daily value traded of Rs.0.25 million, traded at least 10 days of each month for the three months prior to the rebalancing reference date, and have positive net income over 12 months prior to the rebalancing reference date.
A revision of the S&P SL 20 methodology in March 2017 established the practice of a semiannual rebalance of the index (previously conducted annually), which is set to take place during the months of June and December each year.
The revision also established the inclusion of non‐voting ordinary shares listed by the respective companies of the S&P SL 20 Index, provided that such shares meet relevant liquidity requirements.