Financial Times

MBSL Midcap Index crosses 2000 points

The MBSL Midcap Index, for the first time since it was launched in 1999 to measure the price movements of the medium size companies in the Colombo Stock Exchange, crossed 2000 points on June 17, the Merchant Bank of Sri Lanka Ltd (MBSL) said.

It said in the history of the local stock market, it was only in February 1994 that the Sensitive Price Index (SPI) moved over 2000 points. Both the MBSL Midcap Index and the Milanka Price Index (MPI) began on December 31, 1998 as the base, which was set at 1000 points. The MBSL Midcap Index was the first to cross 1000 points in September 1999 while the Milanka Price Index reached 1000 points in December 2001. Last week, the MBSL Midcap Index was the first to move over double its base value.

Both the All Share Price Index (ASPI) and MPI are highly sensitive to price movements of a few large companies as these indices use market capitalization. The MBSL Midcap Index focused on the proper measurement of the price movement of medium size companies, providing a framework for possible use in a midcap index fund, the statement said.