By: DanielXX
STI |
3001.81 |
22.25 |
(0.7%) |
FTSE Midcap Index |
739.68 |
-7.63 |
(-1.0%) |
FTSE Smallcap Index |
637.49 |
-1.79 |
(-0.3%) |
FTSE Fledgling Index |
686.76 |
-5.33 |
(-0.8%) |
Retail Index |
112.72 |
-0.61 |
(-0.5%) |
Plastics Index |
65.80 |
4.60 |
(7.5%) |
Env/Water Index |
108.14 |
1.18 |
(1.1%) |
Energy Index |
183.06 |
1.42 |
(0.8%) |
China Index |
141.27 |
3.76 |
(2.7%) |
PP China Index |
145.39 |
3.07 |
(2.2%) |
FTSE China Index |
440.95 |
11.92 |
(2.8%) |
Since I formed my various sector indices in June 2006 I have not reviewed the component stocks, only removing certain ones when they were delisted. Since it's exactly two years to the month since then, I thought it's a good time to review the stock components and add new ones/remove old ones where appropriate. Below are the revisions, effective immediately.
Choosing of component stocks
To recap:
Component stocks are typically chosen on the basis of the following:
1. Market cap
2. Trading liquidity
3. Track record
4. Expectation of future performance (stability, growth, trading liquidity)
5. Intangibles (eg. institutional coverage, relevance to China sentiment, mindshare in investors' and traders' general attention span)
I also will usually not include stocks that were listed within the last 6 months because their post-listing track record is absent.
Read more...