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The Stock Exchange of Thailand (SET) announces that the selection criteria for SET50 and SET100 indices is amended in terms of the size screening rule from using their past 12 months record to 3 months of average daily market capitalization.
To ensure that the SET50 Index and SET100 Index mostly reflect the market value, SET revises the selection criteria for stocks in SET50 and SET100 with the main issues regarding to the size selection. From the previous rule, the size of eligible stocks is screened from the last 12 months of market capitalization; however, the new rule will draw only last 3-month record to represent the most recent and reasonable market size of the constituents, Ms. Kesara Manchusree, SET Group Head, Markets Division, said .
Due to the volatility of stock market, the 12-month historical period of data has not represented the current market size of the securities. The criteria is only adjusted the period of historical market capitalization data while others remain unchanged. The amendment will help reduce the gap between data variation and the most updated status of the company. Moreover, the shorter historical period of market capitalization is applied in accordance with other international index providers as well as some market comments. Besides, the SET50 and SET100 indices will be more attractive and efficient to use as benchmarks. The revision will be effective on the first half of 2011 periodic review onward. The SET will announce the list of components selected under the new criteria in December 2010, and every six months thereafter.
For more details on the selection criteria, method of index calculation and list of index components, please visit www.set.or.th/set50
