Revised MBSL Midcap Index for 2009

The Merchant Bank of Sri Lanka PLC revised its MBSL Midcap Index from January 1, 2009. The index which was launched in 1999 is revised annually. The criteria for selecting the twenty-five stocks of the index remained unchanged and are: a) Middle range market capitalization, b) Liquidity, c) Profitability.

The All Share Price Index (ASPI) and Milanka Price Index (MPI) are highly sensitive to the price movement of a few large companies. The MBSL Midcap Index, which is computed by Merchant Bank of Sri Lanka PLC (MBSL), is aimed at the proper measurement of price movements of medium sized companies.

The range for market capitalisation for the year 2008 was Rs. 1 bn - Rs. 10.3 bn. With the stock market activity, this range is adjusted for the change in the ASPI annually. Accordingly the range of market capitalisation for the year 2009 would be Rs. 0.61 mn - Rs. 6.1 mn.

The year 2009 revision has resulted in the replacement of thirteen stocks with new companies in the Index. The additions to the Index are Commercial Leasing, Pan Asia Bank, CDIC, Cargills, Haycarb, Richard Pieris, Hotel Services, Overseas Reality, Lanka Walltiles, Lanka Ceramics, Kelani Tyres, AEC, United Motors.

The outgoing stocks are Asia Capital, People’s Merchant Bank, Central Securities, LOLC, Hayleys, Ceylon Tobacco, Tokyo Cement, Pelwatte Sugar, Asha Central, Keells Hotels, Ceylon Investment, Ceylon Guardian, Touchwood.

Stocks are diversified over nine sectors. The MBSL Midcap Index has the base as 1000 as at December 31, 1998 (which is the same as the Milanka Index). Accordingly the current stocks in MBSL Midcap Index are:

Composition of MBSL Midcap Index

Banking, Finance and Insurance: Sampath Bank, Commercial Leasing Company, Nations Trust Bank, Ceylinco Insurance Company, Pan Asia Bank, Capital Development and Investment Company.

Diversified Holdings: Richard Pieris & Company.

Beverage, Food and Tobacco: Cargills (Ceylon), Lanka Milk Foods (CWE) Limited.

Manufacturing: Royal Ceramics Lanka, ACL Cables Limited, Ceylon Glass Company, Lanka Walltile, Lanka Ceramic, Chevron Lubricants, Kelani Tyres, Associated Electrical Corporation.

Healthcare: Nawaloka Hospitals and Asiri Medical Services.

Hotels and travel: Hotel Services (Ceylon).

Chemicals and Pharmaceuticals: Chemical Industries (Colombo) and Haycarb.

Construction and Engineering: Colombo Dockyard.

Land and Property: Overseas Realty (Ceylon).

Motors: United Motors Lanka.