The Colombo Stock Exchange (CSE) announced the following changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2019 mid-year index rebalance.
A revision of the S&P SL 20 methodology in March 2017 established the practice of a semi-annual rebalance of the index (previously conducted annually), which takes place in 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.
The exclusions and inclusions as announced by S&P Dow Jones Indices, effective from June 24 (after the market close of June 21) are presented below in alphabetical order.
Exclusions:
Company and CSE Ticker
1. Ceylon Tobacco Co. - CTC.N0000
2. Nations Trust Bank - NTB.N0000
3. Richard Pieris & Company - RICH.N0000
4. Tokyo Cement Company (Lanka) - TKYO.N0000, TKYO.X0000
Inclusions
1. Expolanka Holdings - EXPO.N0000
2. HNB Assurance - HASU.N0000
3. Janashakthi Insurance Co. - JINS.N0000
4. Melstacorp - MELS.N0000
The S&P SL 20 index includes the 20 largest companies, by total market capitalisation, 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 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 capitalisation of Rs. 500 million, a six-month median daily value traded of Rs. 0.25 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.
Effective from June 24, the stocks in the S&P Sri Lanka 20 in alphabetical order are as follows:
1. Access Engineering - AEL.N0000
2. Aitken Spence - SPEN.N0000
3. Chevron Lubricants Lanka - LLUB.N0000
4. Commercial Bank of Ceylon - COMB.N0000, COMB.X0000
5. DFCC Bank - DFCC.N0000
6. Dialog Axiata - DIAL.N0000
7. Expolanka Holdings - EXPO.N0000
8. Hatton National Bank - HNB.N0000, HNB.X0000
9. HNB Assurance - HASU.N0000
10. Janashakthi Insurance Co. - JINS.N0000
11. John Keells Holdings - JKH.N0000
12. Lanka IOC - LIOC.N0000
13. Melstacorp - MELS.N0000
14. National Development Bank - NDB.N0000
15. People’s Leasing & Finance - PLC.N0000
16. Sampath Bank - SAMP.N0000
17. Softlogic Holdings - SHL.N0000
18. Softlogic Life Insurance - AAIC.N0000
19. Teejay Lanka - TJL.N0000
20. Union Bank of Colombo - UBC.N0000