With the removal of the eye care division Alcon from the parent company, Novartis and its listing on the stock exchange on Tuesday there will be an unscheduled adjustment to the Swiss Market Index (SMI). Alcon is recorded immediately in the leading index of the Swiss stock exchange.
out of a Bank will fall with Julius Baer. In the index represented only the big banks UBS and Credit Suisse will be from the industry. However, even these two have lost since the financial crisis in the SMI.
In recent years, the importance of the food group Nestlé, and the pharmaceutical companies Novartis and Roche are The three Index sets-heavy weights together account for over 50 percent of the SMI. The course has changed their shares or dividend-right certificates, having a strong impact on the entire Index.
Clearly this is evident in the significant increase in the SMI since the beginning of the year, with Almost half of the points of this increase is due to the price increase in the case of Nestlé.
pharmaceutical industry attaches to
Calculates the SMI notes on the basis of the market value of the company, as well as the volume of the exchange-traded share. In order to break the dominance of the three SMI-something heavy weights are dropped in the index calculation, the values of the great company since the autumn of 2017.
With the spin-off of Alcon will lose Novartis now but anyway, the weight of the SMI. The pharmaceutical industry as a whole will increase but on the other hand some weight. The SMI those 20 companies, the average value of market capitalization and annual trading volume on the largest.
For a new recording, but there are additional rules in order to avoid a too frequent change in the Index. So it is possible that the after the relevant parameters calculated in paragraph 22 of the Swiss stock exchange dwells still in the Top 20.
index of belonging is not only a matter of Prestige
in addition to the SMI, there are other Indices, their composition and value are calculated in a similar manner. The Swiss Leader Index (SLI) comprises the 30 largest companies in the Swiss stock exchange. And the SMI Mid (SMIM) consists of those 30 companies that rank immediately behind the SMI. The Swiss Performance Index (SPI) finally, it must be a Dump of almost all of the SIX listed companies.
by the Way, noted: The membership to a specific Index is much more than simply a matter of prestige. Most importantly, the SMI is widely used as a benchmark for installations. Also, there are Fund products that mimic an Index. In addition, many institutional investors may invest only in securities that are represented in a particular index. Therefore, it can, as soon as a Change in the SMI is known or speculation to flare up, to titles unexpected price movements in individual stocks. (sda)
Created: 08.04.2019, 11:44 PM
