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NZX Indices announces the outcomes of the December 2011 Quarterly Index Review. Changes below to index constituents and indexed shares will be applied at market close on Friday 16 December 2011, and become effective at market open on Monday 19 December 2011. For clarity, NZX Indices advises that its review for index changes is carried out on the first Friday of each month.
NZX 50 Index
Following the demerger of Telecom Corporation of New Zealand Limited (TEL) and Chorus Limited (CNU), NZX Indices included CNU as a constituent of the indices of which TEL was a constituent.
Shareholders of TEL became shareholders of CNU following the demerger, and their holding in relation to Indexed Shares has not changed as a result of the demerger. While a new constituent would normally need to have 20 trading days’ history in order to be eligible for inclusion in the NZX50, NZX Indices has determined that this rule will not apply to CNU and, as CNU meets the criteria for inclusion and - based on the available information - is likely to continue to do so, CNU will remain in the NZX50 at this review.
As the NZX50 currently has 51 stocks, one constituent must be removed. Sanford Limited (SAN) will be removed from the NZX50 Index as it has failed to meet the liquidity requirement for ongoing inclusion over the last two Quarterly Index Reviews. No new constituent will be added to the NZX50 Index.
NZX10 Index
NZX Indices has determined to keep Chorus in the NZX10 Index at this review, for the same reasons outlined above.
Kiwi Income Property Trust (KIP) will be removed from the NZX10 Index for being the lowest ranked constituent in the Index. As there are currently 11 stocks in the NZX10 Index, no new constituent will be added to the Index.
