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are calculated using the last session trading data and last quarter free float of each
quarter.
Corporate actions require an index divisor adjustment, this helps keep the index
accurate and ensure that the movement of the index doesn't reflect the corporate
actions of the companies.
The index inception date is 1
st
February 2003.
Methodology:
1. The constituents are weighted according to free floated market capitalization.
2. Market capitalization of uncapped constituents:
Mkt. Cap. u uncapped cunxt. = Iotol Hkt. Cop. - Hkt. Cop. o const. to bc coppJ
3. Recalculated total market capitalization:
Reca|cu|ated tuta| Mkt. Cap. =
Hkt. Cop. o uncoppcJ constitucnts
% o wcigbt o oll uncoppcJ constitucnts
4. Recalculated market capitalization of capped constituents:
Reca|cu|ated Mkt Cap. u capped cunxt.
= RccolculotcJ totol Hkt. Cop. - Hkt. Cop. o uncoppcJ const.
5. Capped market capitalization for each constituents to be capped:
Capped Mkt. Cap. ur cunxt. u mure than 1% we|ght
=
RccolculotcJ Hkt Cop. o CoppcJ const.
no. o constitucnts to bc coppcJ
6. Capping Weight Factor (CWF):
7. Divisor:
Capping Weight Factor (CWF)=
Constituent's new capped Mkt. Cap.
Constituent's original Mkt. Cap.
(adjusted Mkt. cap. at t
0
* CWF)
Divisor =
Index Value at t
0
=1000
8. Index value
Index Divisor:
The divisor is a factor that converts the adjusted market capitalization of the index
constituents to the index level. It is derived at the starting point of the index (Base Date)
by dividing the adjusted market capitalization by an arbitrary number or multiplier. It is
calculated on the inception date.
(adjusted Mkt. cap. * CWF)
Index Value =
Divisor