Monday Jan 20, 2025
Monday Jan 20, 2025
Thursday, 2 January 2025 02:13 - - {{hitsCtrl.values.hits}}
The Merchant Bank of Sri Lanka & Finance PLC (MBSL) constructed stock market index: the ‘MBSL MIDCAP Index’, has announced its composition for 2025.
The Index measures the aggregate price level and price movements of medium-sized companies listed on the Colombo Stock Exchange (CSE).
The index, which came into operation in 1999, is revised annually and focuses on the middle-range market capitalisation, liquidity, and profitability of the firms to be included in the MBSL MIDCAP Index.
The MBSL MIDCAP Index can be used as the benchmark index by individuals and institutional investors who prefer growth but are prepared to withstand only conservative levels of volatility in their equity investments.
It can be used as the benchmark index for the introduction of MBSL MIDCAP linked index funds.
The MBSL MIDCAP Index generates valuable signals for portfolio managers for switching from larger-cap, more sensitive stocks to mid-cap less sensitive stocks with more growth potential in response to changing capital market conditions. The MBSL MIDCAP Index focuses on profitability, helping screen stocks with better future prospects that will cross to higher market capitalisation in the coming year.
The MBSL MIDCAP Index will be in effect from 1 January 2025 and the criteria for selecting the 25 stocks of the index remain unchanged. They are: Middle range market capitalisation as at 30 November 2024; Liquidity based on number of trades during the year and Profitability within the last two years.
When calculating the midcap index for the previous year (2024), stocks were selected from the market capitalisation range of Rs. 3.9 billion to Rs. 39.4 billion, and with the changes to the ASPI, the midcap range for the year 2025 is Rs. 4.91 billion to Rs. 49.07 billion.
Based on the above criteria, the MBSL MIDCAP Index 2025 includes the following stocks representing seven sectors classified according to the GICS industry group.
