The Stock Exchange of Thailand (SET) today announced the launch of a new index called ‘sSET Index’. The index features 102 constituents that represent the price movement of common stocks that have constant liquidity, but exclude constituents of the SET50 and SET100 indices.
The new index will launch on 4 January 2017, for calculation in the first half of 2017, with a review scheduled to take place every six months. The sSET Index aims to be used as a benchmark for investment decisions and can also be used as an underlying index of financial products offered.
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Furthermore, SET will encourage stakeholders to provide information and analysis on sSET constituents in order to support quality investment. Unlike SET50 and SET100, sSET does not have a limit on the number of stocks to be included in the index calculation.
SET Senior Executive Vice President Rinjai Chakornpipat commented: “SET currently has 522 listed companies and the number increases constantly. Apart from big-cap index such as SET50 and SET100, there is an increasing appetite from institutional investors for investment in stocks outside the SET100. To fill this gap in the market, SET will introduce the sSET Index aiming to represent the price movements of common stocks to highlight more listed companies to investors, keeping pace with index development in the global market. These listed companies will become more well known among investors as a result.”
The criteria for sSET Index inclusion are that companies must not be constituents of SET100 Index and in the 90th-98th percentile ranked by cumulative market capitalisation, in line with international practices.
In addition, constituents must have a free float of at least 20 percent of the listed company’s paid-up capital together with monthly trading shares of at least 0.50 percent of listed company total shares for at least 9 out of the 12 months.