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The Stock Exchange of Thailand (SET) today announced the launch of the new index named "sSET Index", featuring 102 constituents that represent the price movement of the common stocks that have constant liquidity, apart from constituents in the SET50 Index and SET100 Index. This new index is scheduled to launch on January 4, 2017, for the calculation in the first half of 2017, and the index review takes place every six months. The "sSET Index" aims to be used as a benchmark for investment decision and can also be used as underlying index of financial products to be offered.
SET Senior Executive Vice President Rinjai Chakornpipat said, “As SET currently having 522 listed companies, the number tends to increase constantly. Apart from big-cap index such as SET50 and SET100, there is increasing appetite from institutional investors for investment in stocks outside the SET100. To fill this gap in the market, SET will introduces the "sSET Index” aiming to represent the price movements of common stocks apart from constituents in SET100 to highlight more listed companies to investors, keeping pace with index development in the global market. These listed companies will become more well known among investors as a result.”
Investors can use sSET Index as benchmark index to compare with their investment performance, while sSET Index can also be used as underlying index of financial products to be offered. Furthermore, SET will encourage stakeholders to provide information and analysis on sSET constituents to provide information to support quality investment. Unlike SET50 and SET100, the sSET does not have a limit on the number of stocks to be included in the index calculation, added Rinjai.
The criteria for constituents selection of the sSET Index cover 1) Size: All constituents must be companies that are not the constituents of SET100 Index with 90th-98th percentile ranked by cumulative market capitalization, in line with international practices. 2) Free float: Constituents must have free float of at least 20 percent of the listed company’s paid-up capital. 3) Liquidity: They should have monthly trading shares of at least 0.50 percent of listed company total shares for at least 9 out of the 12 months, and all constituent changes will be reviewed every six months.
