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Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) will next year introduce new indices on the local bourse following its adoption of the Global Industry Classification Standards (GICS).
ZSE chief executive Justin Bgoni said the new indices are expected to provide the market with better tools for performance measurement as well as assist in sector-based investment strategies.
In line with this, all listed counters will be reclassified into financials, consumer discretionary, consumer staples, materials, industrials information communication and technology as well as real estate.
According to the ZSE, as a result of the reclassification, new indices will be introduced with effect from January 01, 2010 and these are the All Share Index, ZSE Top 10, ZSE Top 15, ZSE Top 25, Small Cap Index(41-61), Medium Cap Index (11-40), Top 10 Investable Index, ZSE Export and Dual Listed Index and Sector indices comprising of ZSE Financials Index, ZSE Consumer Discretionary Index, ZSE Consumers Staples Index, ZSE Industrials Index, ZSE Information, Communication, Technology and Transport Index, ZSE Materials Index and ZSE Real Estate Index.
“The current Industrial Index will be discontinued and redefined according to GICS while the Top 10 Investable Index will account for free float adjustment,” said Mr Bgoni in a notice to stakeholders.
“The new indices are expected to provide the market with better tools for performance measurement as well as assist in sector-based investment strategies. As an example, a fund manager will be able to create a portfolio that focuses on investing in export and dual listed stocks and offer such portfolio as a unit trust to potential investors,” he said.
Online Reporter