Thursday, April 16, 2009

Dow Jones revises SAFE 100 list

Not a single company from Nepal has made it to the reviewed list of South Dow Jones SAFE 100 Index that is developed by Dow Jones for South Asian Federation of Exchanges -- a SAARC recognised forum of 23 stock exchanges and other capital markets institutions from eight South Asian countries and the UAE.
Dow Jones SAFE 100 Index has revised the South Asian index delisting nine Indian companies and eight Pakistani companies. Bajaj Holdings Ltd, HCL Technologies Ltd, Hindalco Industries Ltd, Jaiprakash Associates Ltd, Mahindra & Mahindra Ltd, Siemens India Ltd, Suzlon Energy Ltd, Tata Motors Ltd and Unitech Ltd are the Indian companies dropped from the index.
Pakistani companies delisted are Adamjee Insurance Co Ltd, Askari Bank Ltd, Bank of Punjab, DG Khan Cement Co Ltd, Faysal Bank Ltd, Indus Motor Co Ltd, Nishat Mills Ltd and Pak Suzuki Motor Co Ltd.
These 17 companies have been replaced by an equal number of companies --- six from Bangladesh, nine from India and two from Pakistan --- in the Dow Jones SAFE 100 Index.
Uttara Bank Ltd, Pubali Bank Ltd, AB Bank Ltd, National Bank Ltd, Power Grid Co Ltd and Prime Bank Ltd are the Bangladeshi companies listed in the index while Hero Honda Motors Ltd, Tata Power Co Ltd, Mundra Port & Special Economic Zones Ltd, Nestle India Ltd, Bharat Petroleum Corp Ltd, Bank of India, Power Finance Corp Ltd, NMDC Ltd and Neyveli Lignite Corp Ltd are the Indian companies making into the list this time. From Pakistan, it is Unilever Pakistan Ltd and Habib Bank Ltd.
Dow Jones Indexes, a leading global index provider, has announced the results of the regular annual review of the Dow Jones SAFE 100 Index recently. This review is conducted annually by Dow Jones Indexes that was developed and composed by Dow Jones for South Asian Federation of Exchanges.
The index was launched in Abu Dhabi, UAE, on March 11 on the occasion of eighth General Assembly of the Federation. With the launch of this index, a new era has begun and now products such as Exchanges Traded Funds (ETF) as well as futures trading based on this index would be introduced in this region, said Dow Jones. South Asian exchanges like Nepal and others are considered too small by international fund managers, but when grouped together in an index the market could attract more attention.
After the successful launch, the first regular annual review of the index has taken place while changes in the composition of the Dow Jones SAFE 100 Index and its sub-indexes have become effective after trading closed on March 20.
Due to revision in the composition of Dow Jones SAFE 100 Index, respective sub-indexes such as Dow Jones SAFE Bangladesh Index, Dow Jones SAFE India Index and Dow Jones SAFE Pakistan Index have also undergone changes. However, no change has been recorded in the Dow Jones SAFE Sri Lanka Index and Dow Jones SAFE Mauritius Index due to revision.
The Dow Jones SAFE 100 Index measures the performance of 100 blue-chip companies in five of the eight member states of the South Asian Federation of Exchanges. The five member states included in the index are Bangladesh, India, Mauritius, Pakistan, and Sri Lanka.
Established to develop human resources, enhance technology and exchange of technologies and knowledge, SAFE also plans to start cross-border listing and trading between member-organisations that is composed of 16 stock and commodity exchanges in South Asia and the UAE.
According to SAFE, Dow Jones SAFE 100 Index represents the collective movement, direction and trend of regional stock markets and would enable global investors to use the same as a benchmark for the performance of their investments in the region. The index would also promote the region as an important asset class in the investment portfolio of the regional and international fund managers.

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