FTSE Group (“FTSE”), the global index provider today confirms the annual review results of its Asian benchmark, the FTSE Asia Pacific ex Japan Index. The FTSE Asia Pacific Regional Committee, made up of independent market practitioners, has reviewed the index series and approved the addition of 23 companies to the Large Cap index, including four IPO stocks - Nine Dragons Paper Industries (Hong Kong), Shimao Property Holdings (Hong Kong), Tech Mahindra Limited (India) and Inotera Memories (Taiwan).
The Committee also approved a number of deletions from the series, including Jardine Matheson, Jardine Strategic and Swire Pacific “B” from the FTSE Large Cap Index. These companies have been removed from the index as they have not met FTSE’s liquidity rule. FTSE’s liquidity rule requires that companies must trade at least 0.04% of its free-float adjusted shares in issue based on its median daily trade per month in 8 out of 12 months. This rule ensures that companies must trade for more than half the trading days in a month, and so removes stocks which are difficult to trade.
Full results of the review, which includes changes to large, mid and small cap stocks are available at: http://www.ftse.com/tech_notices/2007/Q1/13550_20070227_GEIS_AP_Review_2007.jsp.
All changes will be applied at close of business on Friday 16 March 2007. Details of FTSE’s liquidity rule can be found at: http://www.ftse.com/Indices/FTSE_Global_Equity_Index_Series/Downloads/FTSE_Enhanced_Liquidity_Rule_0207.pdf.
