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The Merchant Bank of Sri Lanka PLC revised its MBSL Midcap Index with effect from 01 January 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 capitalization for the year 2008 was LKR 1Bn - LKR 10.3Bn. With the stock market activity, this range is adjusted for the change in the ASPI annually. Accordingly the range of market capitalization for the year 2009 would be LKR 0.61 Mn – LKR 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 31 December 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 & INSURANCE
1. Sampath Bank PLC
2. Commercial Leasing Company PLC
3. Nations Trust Bank PLC
4. Ceylinco Insurance Company PLC
5. Pan Asia Bank PLC
6.Capital Development and
Inves-tment Company PLC
DIVERSIFIED HOLDINGS
7. Richard Pieris & Company PLC
BEVERAGE, FOOD AND
TOBACCO
8. Cargills (Ceylon) PLC
9. Lanka Milk Foods (CWE) Limited
MANUFACTURING
10. Royal Ceramics Lanka PLC
11. ACL Cables Limited
12. Ceylon Glass Company PLC
13. Lanka Walltile PLC
14. Lanka Ceramic PLC
15. Chevron Lubricants Lanka PLC
16. Kelani Tyres PLC
17. Associated Electrical Corporation PLC
HEALTHCARE
18. Nawaloka Hospitals PLC
19. Asiri Medical Services PLC
HOTELS AND TRAVEL
20. Hotel Services (Ceylon) PLC
CHEMICALS AND PHARMACEUTICALS
21. Chemical Industries (Colombo) PLC
22. Haycarb PLC
CONSTRUCTION AND ENGINEERING
23. Colombo Dockyard PLC
LAND AND PROPERTY
24. Overseas Reality (Ceylon) PLC
MOTORS
25. United Motors Lanka PLC
