- GPW is launching WIGtech index as of 24 June 2019
- The index covers high-tech companies listed on the Main Market active in biotechnology, games, IT, telecommunication, and new technologies
- The index may in the future be the underlying of financial instruments including futures
- GPW will publish the index portfolio on 14 June and launch index publication on 24 June 2019
The Warsaw Stock Exchange is launching a new index, WIGtech, on 24 June 2019. The index will cover WIG participants whose core business includes medicine, biotechnology, software development, online and mobile sectors.
“Following the launch of macro-sector indices, we have decided to calculate and publish WIGtech covering technology companies. The new index addresses current trends in the economy and on the capital market. High-tech companies play an increasing role in the economy and on the exchange. GPW provides funding opportunities to innovative companies which are instrumental to technological progress. As trading venues, exchanges are also highly specialised providers of state-of-the-art solutions which improve the quality of available services. As a part of its strategic objectives, GPW develops technologies in order to strengthen our competitive advantage,” said Izabela Olszewska, GPW Management Board Member.
The number of WIGtech participants will vary. Similar to other indices, the share of each participant will be calculated depending on its free float. The share of the biggest companies will be capped at 10 percent. WIGtech is a price index. Its reference value is 10,000 points. The index will be published on a continuous basis, once per minute. The index portfolio will be subject to change on a quarterly basis, coinciding with modifications of the other indices. The first index portfolio will be published on 14 June 2019.
“It is our intention that WIGtech soon becomes the underlying of futures or other financial instruments. We believe that the new index will attract investor interest,” said Izabela Olszewska.
The launch of financial instruments based on the index will follow a potential modification of the index methodology, e.g., the eligibility of portfolio participants, the number of participants, and the weights of participants. Modifications, including the index calculation methodology and the eligibility of portfolio participants, will be decided in consultation with market participants.
Figure 1. WIGtech portfolio by sector [%]
Source: GPW; simulation as at 23 May 2019
Figure 2. Number of WIGtech portfolio participants by sector
Source: GPW; simulation as at 23 May 2019
