Sri lanka News – The Colombo Stock Exchange (CSE) has removed Commercial Leasing and Finance from it’s most liquid S&P SL20 board after the counter was amalgamated with it’s parent LOLC Finance PLC, Sri Lanka’s stock market said in a statement.
The move will go into effect on March 31 when Commercial Leasing and Finance PLC would cease to exist.
Following the exclusion, Softlogic Life Insurance Plc (AAIC) was added to the S&P SL20 board, the CSE said.
CLC was one of the most illiquid shares in the market and analysts have said the share was earlier use to pump the overall index before the CSE came up with a index revision.
S&P SL20 Index comprises the 20 largest companies by total market capitalization listed on CSE.
The constituents are weighted by float-adjusted market capitalization, subject to a single stock cap of 15%, which
is employed to reduce single stock concentration.
A stock must have a minimum float-adjusted market capitalization
of 500 million Sri Lankan rupees (Rs), a six-month median daily value traded of Rs 0.25 million and have positive net income over the 12 months prior to the rebalancing reference date, to be eligible for inclusion in S&P SL20 Index , the CSE said. (Colombo/Mar30/2022)