On January 23, 2007, the Warsaw Stock Exchange presented new rules for the management of its indices.
Companies with a free float market cap above 1 million EUR and free float greater than 10% will be eligible for inclusion. The weighting of a constituent in the index will be determined by its free float.
Following these changes WSE will be publishing three main price indices (currently two). The WIG20 blue-chip index remains unchanged and will consist of the largest and most liquid 20 companies. The mid-cap index – MIDWIG - will change the name to mWIG40 and will consist of the next 40 companies. The WIRR index will be replaced by the sWIG80 index and will consist of next 80 companies ranked by free float market cap and turnover value for the last 12 months. All indices will be calculated in the real-time and published:
- WIG20 every 15 seconds,
- mWIG40 and sWIG80 every 60 seconds.
The group of price indices supplements the TechWIG index, which covers innovative technologies companies. Its methodology remains unchanged.
The new composition (portfolios) of three main price indices will be published at the beginning of February following the ranking drawn up as of January 31, 2007.
The WIG, WIG-PL and sector indices will compose a group of total return indices. The WIG index will cover all companies and the WIG-PL all domestic companies, which under initial criteria are eligible for inclusion. The new methodology will have no impact on their calculation frequency.
Following the change of the MIDWIG index name, the name of futures contracts on that index will be changed as well.
All, the above mentioned changes, will be executed after close of business on March 16, 2007.
