Saturday Nov 30, 2024
Saturday Nov 30, 2024
Monday, 2 January 2023 00:00 - - {{hitsCtrl.values.hits}}
Merchant Bank of Sri Lanka and Finance PLC. has announced the revision of the pioneering MBSL MIDCAP Index with effect from 1 January 2023.
The Composition is as follows.
Inclusions
Exclusions
The criteria for selecting the 25 stocks of the index remained unchanged.
They are Middle Range Market Capitalisation as of 30 November 2022; 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 (2022), stocks were selected from the market capitalisation range of Rs. 4.26 billion to 42.57 billion and with the changes of ASPI the midcap range for the year 2023 as Rs. 3.21 billion to Rs. 32.18 billion. The MBSL MIDCAP Index measures the aggregate price level and price movements of medium size 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 the Profitability of the firms to be included in the MBSL MIDCAP Index.
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.
MBSL MIDCAP Index generates valuable signals for portfolio managers for switching from larger-cap more sensitive stocks to midcap less sensitive stocks with more growth potential in response to changing capital market conditions. The MBSL MIDCAP Index focuses on profitability, helps to screen stocks with better future prospects that will cross to higher market capitalisation in the coming year.
