The Stock Exchange of Thailand (SET) today
announced the launch of the new index named "sSET Index", featuring 102
constituents that represent the price movement of the common stocks that have
constant liquidity, apart from constituents in the SET50 Index and SET100 Index.
This new index is scheduled to launch on January 4, 2017, for the calculation
in the first half of 2017, and the index review takes place every six months.
The "sSET Index" aims to be used as a benchmark for investment decision and can
also be used as underlying index of financial products to be offered.
SET Senior Executive Vice President Rinjai Chakornpipat said, "As SET currently
having 522 listed companies, the number tends to increase constantly. Apart from
big-cap index such as SET50 and SET100, there is increasing appetite from
institutional investors for investment in stocks outside the SET100. To fill
this gap in the market, SET will introduces the "sSET Index" aiming to represent
the price movements of common stocks apart from constituents in SET100 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."
Investors can use sSET Index as benchmark index to compare with their investment
performance, while sSET Index can also be used as underlying index of financial
products to be offered. Furthermore, SET will encourage stakeholders to provide
information and analysis on sSET constituents to provide information to support
quality investment. Unlike SET50 and SET100, the sSET does not have a limit on
the number of stocks to be included in the index calculation, added Rinjai.
The criteria for constituents selection of the sSET Index cover 1) Size: All
constituents must be companies that are not the constituents of SET100 Index
with 90th-98th percentile ranked by cumulative market capitalization, in line
with international practices. 2) Free float: Constituents must have free float
of at least 20 percent of the listed company's paid-up capital. 3) Liquidity:
They should have monthly trading shares of at least 0.50 percent of listed
company total shares for at least 9 out of the 12 months, and all constituent
changes will be reviewed every six months.
SET "The 5th Decade of Sustainable Wealth for Thais"
Source: The Stock Exchange of Thailand