MBSL midcap index revised

REVISION: The Merchant Bank of Sri Lanka (MBSL) revised its MBSL Midcap Index with effect from January 01, 2007. The index which was launched in 1999 is revised annually.

The criteria for selecting the twenty-five stocks of the index remain unchanged and are: Middle range market capitalization Liquidity and profitability.

The range for market capitalization in 2002 was Rs. 200 mn - LKR 2bn. In view of the stock market becoming more active, this range was adjusted considering the movements in the ASPI annually. Accordingly the range was adjusted on market capitalisation for 2007 which is Rs. 1.030bn - Rs. 10.30bn.

Revision at end of 2006 has resulted in the replacement of ten new companies in the index. The addition to the Index are Richard Pieris and Company Ltd., Aitken Spence and Company Ltd., Hayleys Ltd, Ceylon Guardian Investment Trust Ltd., Associated Motorways Ltd., Sierra Cables Ltd., United Motors Lanka Ltd, Ceylon Oxygen Ltd, Asiri Medical Services Ltd, and Kelani Cables Ltd.

The outgoing stocks are Lanka Ceramics Ltd, Ceylor Investment Company Ltd. Dipped Products Ltd, Colombo Dockyard Ltd, Ceylon Grain Elevators Ltd, Hayleys MGT Knitting Mills Ltd, Nawaloka Hospitals Ltd, Taj Lanka Ltd, The Finance Company Ltd, and Tokyo Cement Lanka Ltd.

The MBSL Midcap Index has the base as 1000 as at December 31, 1998 (which is the same as the Milanka Index). The index recorded an all time high of 4801 on December 1, 2006. Stocks are diversified over seven sectors.

The manufacturing sector accounts to 36% of the total number of stocks in the index whilst the balance 64% is divided among Bank Finance and Insurance sector.

Diversified sector, Investment and Trust sector, Land and Property sector, Motors sector and Healthcare sector.

However, based on the total market cpaitalisation manufacturing sector contributed by 21%, Diversified sector by 30% and Bank Finance and Insurance sector by 25% Midcap index return for the first 11 months period 2006 was 43% against the return of 18% in 2005. The current stocks in MBSL Midcap Index are:

Bank Finance and Insurance

1. Nations Trust Bank
2. Sampath Bank Limited
3. Merchant Bank of Sri Lanka Ltd,
4. Seylan Bank Limited
5. Central Finance Co. Limited
6. Ceylinco Insurance Ltd
7. Asia Capital Limited

Diversified Holdings

8. Aitken Spence and Company Limited
9. Hayleys Ltd.,
10. Richard Pieris and Company Ltd,

Investment and Trust

11. Ceylon Guardian Investment Trust Ltd,

Motors

12. Associated Motorways Ltd,
13. United Motors Lanka Ltd,

Land and Property

14. Touchwood Investments Ltd

Manufacturing

15. ACL Cabies Limited
16. Ceylon Oxygen Ltd,
17. Royal Ceramics Lanka Limited
18. Caltex Lubricants Lanka Limited
19. Kelani Cables Ltd
20. Lanka Walltiles Limited
21. Pelwatta Sugar Industries Limited
22. Sierra Cables Ltd,
23. Ceylon glass Company Limited

Health Care

24. Asiri Hospitals Limited
25. Asiri Medical and Services Limited.