News is circulating that the Kuwait SE will roll its new index five months ahead of its scheduled November 2011 debut. This would be great news if confirmed. As stated in an earlier post, the new index will consist of 15 blue-chip companies, in collaboration with NASDAQ. Those will be “carefully” chosen from across all sectors of the exchange and will be placed on a bi-annual review to aid in updating the constituents of the index. The move will be a vital one because the current main index is price-weighted and fails to provide a relaible reading.
Below are links to previous articles related to the issues with the current price index:http://www.alphadinar.com/2011/01/11/kuwait-ses-2011-reforms-start-with-the-index/
http://www.alphadinar.com/2010/12/29/difference-in-weights-of-the-price-and-weighted-kuwait-se-indices/http://www.alphadinar.com/2010/12/14/kuwait-se-weighted-index-should-be-the-main-index/http://www.alphadinar.com/2009/08/05/price-weighted-index-vs-market-weighted-index/
No comments:
Post a Comment