The Colombo Stock Exchange (CSE), announces the following changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2019 year-end index re-balance.
A revision of the S&P SL 20 methodology in March 2017, established the practice of a semi annual re-balance 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 the relevant liquidity requirements.
The exclusions and inclusions as announced by S&P Dow Jones Indices, effective from December 23, 2019, (after the market close of December 20, 2019), are presented below in alphabetical order.
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%, 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 capitalization of 500 million Sri Lankan rupees (Rs), 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 re-balancing reference date and have a positive net income over the 12 months prior to the re-balancing reference date.
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