|Athens, 10 July 2012
|Changes to the FTSE/ATHEX Index Series
Following the revisions of the ATHEX Rule Book and the implementation of a new segmentation model in the ATHEX Market, a number of changes will take place in the structure of the FTSE/ATHEX Index Series. The main objective of the planned changes is to make the indices reflect more effectively and with increased homogeneity the grouping of the ATHEX Large Cap and Mid Cap listed companies.
The major changes are the following:
The changes will be effective from 3 December 2012
- New Index based on Fundamentals to substitute the Small Cap Index
Aiming to increase the awareness and visibility of smaller capitalization listed companies, ATHEX plans to replace the current FTSE/ATHEX Small Cap index with a new index type targeting to:
- Introduce a new trend in the Greek market regarding index creation, using a methodology different to the current one, i.e. that of market capitalization weighted indices based solely on market capitalisation selection criteria.
- Improve focus in companies with prominent profiles to the investment community.
The use of metrics which take into account announced company fundamentals could improve their visibility to the buy side and the research analysts' community and generate further interest and elaboration of their overall performance. The aim is to establish efficient interaction between the smaller listed companies and the buy side and allow interaction so that the trading and other characteristics of the companies improve over time.
Starting from forthcoming review on September 2012, ATHEX in cooperation with FTSE will launch a new index based on company fundamentals. Stocks selection for that index will be based on a number of fundamental ratios, which are commonly used when performing corporate evaluation. The index will be market cap weighted.
- Changes to Index Ground Rules
A number of changes will take place in the FTSE/ATHEX Index Ground Rules in order to reflect the new index creation and structure. At the same time changes will take place regarding the free float methodology.
- Starting from March 2013 review adoption of the actual free float methodology (rounded up to next 1%) in all FTSE/ATHEX Index series, following the decision of the FTSE Policy Group approved on the 12th June 2012.
- The following statement (with immediate effect) will be added in section 4 of the rules:
"In the event that a company which is subject to restructuring under specific provisions, such as receiving capital injection by way of an equity issue from the Government and or other agencies or bodies and the company's free float falls below the minimum requirement of 15%, then the company should be accepted in the indices with its actual free float".