Colombo bourse announces constituent changes to S&P SL20 Index

The Colombo Stock Exchange (CSE) has announced changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2021 mid-year index rebalance.

Accordingly, the new inclusions as announced by S&P Dow Jones Indices, effective from 21st June 2021 are: Brown & Co PLC, LB Finance PLC, Richard Pieris & Co PLC and Vallibel One PLC.

The exclusions are: Access Engineering PLC, Commercial Bank of Ceylon PLC Non-Voting, DFCC Bank PLC, Distilleries Company of Sri Lanka PLC and People’s Leasing & Finance PLC.

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, employed to reduce single stock concentration. 

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, and have positive net income over the 12 months prior to the rebalancing reference date.