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The TA-Mid cap 30 index will be expanded at the next index update to include 50 stocks and its new name, the TA-Mid cap-50 index, will reflect this change.
On May 17, 2007, the TASE board of directors decided to expand the ranks of the TA-Mid cap 30 index from 30 to 50 stocks. The index name will be changed to the TA-Mid cap 50 index to reflect this decision.
The change will take effect at the next index update, on July 1, 2007, when the calculation of the TA-Mid cap 30 index will terminate and be replaced by that of the TA-Mid cap 50 index. The preconditions for inclusion in the TA-Mid cap 50 index will remain the same as those for the TA-Mid cap 30 index.
“In light of the energetic activity and the increased listings of new companies on the stock exchange, the last two years have seen an increase in the market value of the TA-Mid cap stocks and their negotiability,” explained Dror Shalit, Senior Vice President and Head of the Trading and Clearing House Department. “Increasing the ranks of the index to 50 stocks will allow broader representation of TA-Mid cap stocks and significantly increase the market value of the index.”
Shalit added that “the relatively high turnover of the index population during semi-annual updates sometimes harmed the index’s importance and this expansion of the index’s ranks is expected to reduce the impact of changes in the index stocks.”
