MBSL revises MidCap index for 2011

The Merchant Bank of Sri Lanka (MBSL) has revised its MidCap index for 2011 including a selection of best stocks.

MBSL also said the index has recorded 125% growth for the year ended 31 Dec 2009 and has sustained a growth of 70% for the year ended 31 Dec 2010.

In a pioneering move, MBSL constructed a Stock market Index: the “MBSL Midcap Index”, which measures the aggregate price level and price movements of medium size companies listed on the Colombo Stock Exchange (CSE).

The All Share Price Index (ASPI) measures the share price movements of all the stocks listed on the CSE whilst the Milanka Price Index (MPI) measures the price movement of highly capitalised companies listed on the CSE.

There was no index to measure the price movement of medium sized companies listed on the CSE.

The MBSL Midcap Index filled the vacuum.

“MBSL Midcap Index can be used as the benchmark index by individual 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 Midcap linked Index funds.

The Midcap Index, together with the Milanka Price Index (MPI) generate valuable signals for portfolio managers for switching between larger-cap more sensitive stocks and the midcap less sensitive stocks in response to changing capital market conditions,” a spokesman for MBSL said.