New inclusions & exclusions of MBSL MIDCAP Index 2020 announced

Jan 02, 2020 (LBO) – New inclusions and exclusions of the MBSL MIDCAP Index 2020 have been announced.

Accordingly, HNB Assurance, Sanasa Development Bank, Union Assurance, Commercial Bank, Dunamis Capital, Expolanka Holdings, Odel, Singer (Sri Lanka), Access Engineering and Ril Property have been excluded from the index.

Seylan Bank, Pan Asia Banking Corp, First Capital Holdings, Asiri Hospital Holdings, Overseas Realty (Ceylon), ACL Cabels, Alumex, Chebron Lubricants Lanka, Ceylon Gran Elevators and Royal Ceramics Lanka have been included in the index.

MBSL MIDCAP Index which is in effect from 01 January 2020 and the criteria for selecting the twenty-five stocks of the index remained unchanged. They are;

A. Middle Range Market Capitalization as at 30 November 2019.
B. Liquidity based on number of trades during the year.
C. Profitability within the last two years.

When calculating the midcap index for the previous year (2018), stocks were selected from the market capitalization range of LKR 2.24 Bn to 22.39 Bn and with the changes of ASPI the midcap range is defined for the year 2019 as LKR 2.31 Bn to LKR 23.11 Bn.

Based on the above criteria the MBSL MIDCAP index 2020 includes the following stocks representing 07 sectors.

  Company Sectors
1 CENTRAL FINANCE COMPANY PLC  
2 FIRST CAPITAL HOLDINGS PLC  
3 HATTON NATIONAL BANK PLC (NV)  
4 JANASHAKTHI INSURANCE COMPANY PLC  
5 LOLC FINANCE PLC  
6 NATIONS TRUST BANK PLC  
7 PAN ASIA BANKING CORPORATION PLC  
8 SEYLAN BANK PLC  
9 SEYLAN BANK PLC (NV)  
10 SOFTLOGIC LIFE INSURANCE PLC  
11 UNION BANK OF COLOMBO PLC BANKS FINANCE & INSURANCE
12 ACL CABLES PLC  
13 ALUMEX PLC  
14 CHEVRON LUBRICANTS LANKA PLC  
15 CEYLON GRAIN ELEVATORS PLC  
16 ROYAL CERAMICS LANKA PLC  
17 TOKYO CEMENT COMPANY (LANKA) PLC (NV)  
18 TOKYO CEMENT COMPANY (LANKA) PLC MANUFACTURING
19 AITKEN SPENCE PLC  
20 RICHARD PIERIS AND COMPANY PLC  
21 VALLIBEL ONE PLC DIVERSIFIED HOLDINGS
22 ASIRI HOSPITAL HOLDINGS PLC HEALTH CARE
23 VALLIBEL POWER ERATHNA PLC POWER & ENERGY
24 AMBEON HOLDINGS PLC INVESTMENT TRUST
25 OVERSEAS REALTY (CEYLON) PLC LAND & PROPERTY

MBSL MIDCAP Index can be used as the benchmark index by individuals and institutional investors who prefer growth but are prepared to with stand 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 generate 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 focus in profitability, helps to screen stocks with better future prospects that will cross to higher market capitalization in the coming year.