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 (CSE Ticker: BUKI), Carson Cumberbatch PLC (CSE Ticker: CARS), Lion Brewery Ceylon PLC (CSE Ticker: LION), Sri Lanka Telecom PLC (CSE Ticker: SLT) 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 (CSE Ticker: ASIR), Ceylinco Insurance PLC (CSE Ticker: CINS), Ceylon Cold Stores PLC (CSE Ticker: CCS), Hemas Holdings PLC (CSE Ticker: HHL).
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 capitalization, 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.
To be eligible for inclusion, a stock must have a minimum float-adjusted market capitalization 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.
For information, including the complete methodology, please visit: www.spindices.com