On April 1, 2007, the Tel Aviv Stock Exchange will be launching a new index: the Yeter-120, which will be replacing the Yeter-150 index.
The Yeter-120 will consist of the 120 broad market stocks with the highest market capitalization on the TASE that are not included in the TA-100 index.
The TASE has also set eligibility criteria regarding valuation and minimal public float. No such restrictions apply to the Yeter-150 index.
To qualify for inclusion in the index, the public must hold at least 20% of the company's shares, and the value of the public’s holdings must be at least NIS 35 million. Also, the company must appear in the list of the 300 most liquid shares on the TASE.
Like the other TASE indices, the new index will be updated twice a year, on January 1 and July 1 (the dates of record will be December 15 and June 15, respectively).
"The index is designed to provide continuous information about the development of share prices in the segment of mid-cap shares. It can serve as a benchmark for investors in this group of shares," said Dror Shalit, Senior VP and head of the Trading and Clearing Department. "The eligibility criteria set for the Yeter-120 assure that it will be a higher quality index, with the most liquid stocks that qualify."
He added that based on figures from December 2006, the companies to be included in the Yeter-120 index are worth a combined NIS 41 billion. The weight of the largest share on the index is 1.9%, and the smallest is 0.32%.
Like the other TASE indices, the Yeter-120 can also serve as a platform for index instruments (ETFs and mutual funds), Shalit said. Such instruments have become increasingly popular: turnover in them now comprises 20% of the total volume of trade in shares.
