Revised MBSL Midcap Index for 2008

The Merchant Bank of Sri Lanka (MBSL) PLC revised its MBSL Midcap Index from January 2.The index which was launched in 1999 is revised annually.

The criteria for selecting the twenty-five stocks of the index remained consistent with past years namely: a) Middle range market capitalisation, b) Liquidity in the stock, c) Profitability record for two consecutive years.

The All Share Price Index (ASPI) and Milanka Price Index (MPI) are highly sensitive to the price movement of a few large companies. The MBSL Midcap Index, which is computed by the Merchant Bank of Sri Lanka Limited (MBSL), is aimed to ensure the proper measurement of price movements of medium sized companies.

The range for market capitalisation for the year 2007 was Rs. 1bn to Rs. 10. 3bn. In view of the stock market activity for the year 2007, this range is adjusted for the change in the ASPI annually. Accordingly the new range of market capitalisation for the year 2008 would be Rs. 1bn to Rs. 10 bn.

The year 2008 revision has resulted in the replacement of twelve stocks with new companies in the Index.

The additions to the Index are People's Merchant, Central Securities, LOLC, Ceylon Tobacco, LMF, Tokyo Cement, Nawaloka Hospital Limited, Asha Central, Keells Hotels, CIC, Colombo Dockyard and Ceylon Investment.

The outgoing stocks are Richard Pieris, Aitken Spence, Central Finance, Asiri Hospitals, AMW, Seylan Bank, Sierra, United Motors, Merchant Bank, Lanka Walltiles, Ceylon Oxygen, Kelani Cables.