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Dow Jones Indexes, a leading global index provider, and the Federation of Euro-Asian Stock Exchanges (FEAS) today announced the launch of the first blue-chip index derived from Euro-Asian stock exchanges, the Dow Jones FEAS Titans 50 Equal Weighted Index.
An equal-weighted measure of the 50 largest stocks traded on FEAS-member exchanges, the new gauge is designed to serve as the basis for financial products such as funds and structured products.
With its launch today, The Dow Jones FEAS Titans 50 Equal Weighted Index becomes the fourth member of the Dow Jones FEAS Index family; started in 2009, the index series measures the performance of companies across the Euro-Asian region. Earlier this year, the Bucharest, Palestine, Egypt and Kazakhstanexchanges were added to the Dow Jones FEAS Index universe, pushing the current total to 16.
"The introduction of this new index, comprised of 50 blue-chip stocks traded on Euro-Asian exchanges, is significant for market participants seeking a trustworthy tool to help them measure investment opportunities in an increasingly appealing region," said Michael A. Petronella, President, Dow Jones Indexes. “The Dow Jones FEAS Titans 50 Equal Weighted Index could play an important role in adding to the transparency and liquidity in these burgeoning capital markets.”
“FEAS has grown from 12 members 16 years ago to 34 members and 14 affiliate members in 28 countries; today FEAS covers a vast area from Mongolia in the East to Croatia in the West. At FEAS, we attach great value to visibility and transparency, and the Dow Jones FEAS Indexes, designed to measure the performance of companies across the Euro-Asian region, is the first of its kind. With the launch of the Dow Jones FEAS 50 Titans, we hope to increase both the investment in the region and the products based on these indexes in the near future," said Huseyin Erkan, chairman & chief executive officer, Istanbul Stock Exchange & president, FEAS.
The index universe is defined as all stocks in the Dow Jones FEAS Composite Index. Exchanges represented in the index are: Abu Dhabi (UAE), Almaty (Kazakhastan), Amman (Jordan), Banja Luka (Bosnia and Herzegovina), Belgrade (Serbia), Bucharest (Romania), Cairo (Egypt), Istanbul (Turkey), Karachi (Pakistan), Manama (Kingdom of Bahrain), Muscat (Oman), Nablus (Palestine), Sarajevo (Bosnia and Herzegovina), Skopje (Republic of Macedonia), Sofia (Bulgaria) and Zagreb (Croatia).
The ranking is calculated by weighting each stock’s float-adjusted market capitalization at 60%, sales/revenue at 20% and net income at 20%. The top 50 stocks by final rank are selected as index components.
The index is equal-weighted, with each component’s weight set to 2%. Weights are reviewed on a quarterly basis, returning to 2% using price-based weightings. And the index components are reviewed annually in May.
Calculation of the Dow Jones FEAS Titans 50 Equal Weighted Index began on November 2, 2011, with real index history available daily from this date forward. Back-tested historical data have been calculated daily back to December 31, 2004, the date at which the index base value was set at 1000.
