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From February 4, 2013, NASDAQ OMX Copenhagen will use the capped version (OMXC20CAP) as the main blue chip index for the Danish equity market. The OMXC20 will remain in our index offering.
The OMXC20 CAP has a capitalization limit of 20 per cent which determines how much a company can weigh in the index, which is in line with placement requirements for a range of investment products.
“One of the strong qualities of the classic OMXC20 is that it represents the actual proportions of the value of tradable shares among the most traded shares. However, since most investment products are attached to our OMX Copenhagen CAP indices, such as All-share CAP, Benchmark CAP and C20 CAP, including Danish retail investors’ favorite - investment funds - it is only natural that we now perform a switch and recommend the OMXC20 CAP as the main blue chip index for the Danish market” said Magdalena Hartman, Vice President NASDAQ OMX Global Index Group.
The OMXC20 CAP was introduced in December 2011 and shortly after most derivatives trading was transferred to the OMXC20 CAP. Now, nearly all investment funds use either the OMX Copenhagen All-share CAP, OMX Copenhagen Benchmark CAP or the OMXC20 CAP as underlying index.
In OMXC20 CAP Novo Nordisk’s weight is reduced to a maximum of 20 per cent, while the remaining 19 index constituents increase their weight proportionally. Deliberations regarding the switch have happened in dialogue with Novo Nordisk.
“We encourage media to use the OMXC20 CAP instead of the classic OMXC20 as a primary benchmark for the Danish equity market. When media outlets highlight only one index in print, online or broadcast TV, it is important that investors can follow the general direction of the 20 largest and most traded companies in the Danish market via a more balanced index,” said Bjørn Sibbern President of the NASDAQ OMX Copenhagen exchange and Senior Vice President Transaction Services Nordic.
