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The Stock Exchange of Thailand (SET) announces a rule amendment to its SET High-Dividend 30 Index (SETHD) by adding a buffer rule in order to maintain the continuity and stability of SETHD. The buffer rule will be applied in the next periodic review which will take place in December 2011.
To be eligible for inclusion in the SETHD, the stock must be a member of the SET100 index and must have consistently paid high dividends. The first 30 stocks ranked in descending order by average dividend yield will be included in the SETHD index.
“Having studied historical data and comparing with other indices, we found that the SETHD’s index components have changed significantly during each revision period. This is likely to affect an issuer who uses SETHD as an underlying index of funds or other financial instruments. Therefore, to increase stability for SETHD, a buffer rule will be added in order to give the priority to the existing constituents. This new rule will be effective for the next periodic review in December 2011,” said SET Group Head Products & Business Development Kesara Manchusree.
