01 January 2008. The Merchant Bank of Sri Lanka PLC revised its MBSL Midcap Index with effect from Monday 02nd January 2008.The index which was launched in 1999 is revised annually. The criteria for selecting the twenty-five stocks of the index remained consistent with past years namely:

a) Middle range market capitalization
b) Liquidity in the stock
c) Profitability record for two consecutive years

The All Share Price Index (ASPI) and Milanka Price Index (MPI) are highly sensitive to the price movement of a few large companies. The MBSL Midcap Index, which is computed by Merchant Bank of Sri Lanka Limited (MBSL), is aimed to ensure the proper measurement of price movements of medium sized companies.

The range for market capitalization for the year 2007 was LKR 1Bn to LKR 10.3Bn. In view of the stock market activity for the year 2007, this range is adjusted for the change in the ASPI annually. Accordingly the new range of market capitalization for the year 2008 would be LKR 1Bn to LKR 10 Bn.

The year 2008 revision has resulted in the replacement of twelve stocks with new companies in the Index. The additions to the Index are People’s Merchant, Central Securities, LOLC, Ceylon Tobacco, LMF, Tokyo Cement, Nawaloka Hospital Limited, Asha Central, Keells Hotels, CIC Colombo Dockyard and Ceylon Investment.

The outgoing stocks are Richard Pieris, Aitken Spence, Central Financé, Asiri Hospitals, AMW, Seylan Bank, Sierra, United Motors, Merchant Bank, Lanka Walltiles, Ceylon Oxygen, Kelani Cables.

The twenty five stocks are diversified into nine sectors as given below: The MBSL Midcap Index has the base as 1000 as at 31 December 1998 (which is the same as the Milanka Index). Accordingly the current stocks in MBSL Midcap Index are:

Bank Finance & Insurance
1. Asia Capital
2. Sampath Bank
3. Nations Trust Bank
4. People’s Merchant
5. Central Securities
6. LOLC
7. Ceylinco Insurance

Diversified Holdings
8. Hayleys

Beverage Food and Tobacco
9. Ceylon Tobacco
10.LMF

Manufacturing
11. Royal Ceramic
12. ACL Cables
13. Ceylon Glass
14. Tokyo Cement
15. Pelwatte Sugar
16. Lanka Lubricants(Caltex)

Health Care
17. Nawaloka Hospital Limited
18. Asiri Medical
19. Asha Central

Hotels and Travel
20. Keells Hotels

Chemicals and Pharmaceuticals
21. CIC

Construction and engineering
22. Colombo Dockyard

Investment Trust
23. Ceylon Investment
24. Ceylon Guardian
25. Touchwood