WSE starts publishing new indices
September 24, 2013
Adam Maciejewski, WSE CEO
Warsaw Stock Exchange (WSE) Monday launched new expanded large-cap index WIG30, set to replace the WIG20 blue-chip index by the end of 2015, with portfolio comprised of the 30 biggest and most liquid stocks listed on the WSE Main Market, WSE said in a press release.
The new WIG30 index is expected to increase investors' interest in its components and thus raise turnover on those stocks, Adam Maciejewski, President of the WSE Management Board said.
“WIG30 is a better reflection of the growth of the Polish economy and the dynamic development of the Polish capital market in the past years; the expansion of the elite group of listed companies will be an important factor of their further growth and should attract even more investor interest in their stock,” Maciejewski said as cited in a press release.
“The replacement of the main stock exchange index is complementary in nature as it covers both the cash and the derivatives market: the new index will improve the liquidity of trading on the equities market and, in the future, stimulate growth of the derivatives market,” Maciejewski said.
WIG30 is a price-based index, i.e., the calculation of its value only includes prices of trade made. The number of the WIG30 components from a single industry is capped at seven, while the share of a single company in the index capitalization - to 10%.
The expansion of the portfolio of the WSE’s main stock index also implies modifications to existing index-based derivatives. WIG30 will be the underlying of new futures and options, and it will eventually replace the currently listed WIG20 futures and options. The migration from the currently listed derivatives to new derivatives will begin in late 2014 and includes parallel listing of WIG20 derivatives and WIG30 derivatives for a certain period of time. According to the timeline, the migration to the new derivatives will be completed by September 2015.
The WIG20 will be published until end-December 2015.
Monday also saw the inauguration of the WIG30 TR – total return index which takes into account not only the prices of transactions concluded, but also revenues from dividends and rights.
WSE will also introduce changes to mid-cap and the small- indices and will launch the new WIG50 and WIG100 indices publication as of March 2014.