The new indices will provide a sound basis for comparisons of companies and sectors with other markets, and this will make it easier for the market to identify investment opportunities. The improved features of the new indices include the methods used to adjust for free float, maximum weighting limitations and the freedom to select constituent companies independently of listing type.
The Oslo Stock Exchange´s new index family is based on the Global Industry Classification Standard (GICS) established by Morgan Stanley and Standard & Poor´s. This accordingly makes the Oslo Stock Exchange more attractive for foreign investors around the world since international investors are already familiar with this classification methodology.
As well as offering a more correct delineation of companies and industries, the new indices also represent a harmonised approach in relation to the Norex Alliance, which is a binding co-operation between the OM Stockholm Exchange, the Copenhagen Stock Exchange, the Iceland Stock Exchange and the Oslo Stock Exchange. The exchanges that make up the Norex Alliance will have the same structure of indices, and during the course of the current year they will establish a joint market for securities trading. This will mean that investors will be able to trade in shares listed on any of the participating exchanges from a single point of contact.
Index family
The new index family will be as follows: - All Share Index (OSEAX) - All shares listed on the Oslo Stock Exchange.
- Benchmark (OSEX) - A selected list of ca. 70 liquid shares.
- Benchmark capped (OSEXcap)
- Small Cap Index - Shares with smaller market capitalisation (The 10 % lowest)
- OBX (the 25 most traded shares – continues unchanged).
- 10 sector indices, together with underlying industry group indices.
OSEAX will include all the shares listed on the Oslo Stock Exchange (unabridged), whilst OSEX is to be the new benchmark index to replace the previous All Share Index (TOTX) as an indicator of the overall performance of the Oslo Stock Exchange. The OSEX index will include no more than 70 companies, but will provide a correlation with the total market capitalisation of Stock Exchange listed companies of more than 95%. Adjustments for free float will be applied to the constituents of the OSEX index, and this will mean, for example, that large shareholdings not available to the market (including state holdings of shares) will be excluded from the index base.
The old indices will continue to be calculated and published for a transitional period.
NB! The launch of new indices on Friday, February 2nd, will be limited to the OSEAX and the new sectoral indices. The new OSEX index, OSEXcap Index and Small Cap Index will be launched at a somewhat later date, and the Oslo Stock Exchange will give prior notice of this date in good time.
