SPDJI Launches 14 New African Indexes

May 13, 2014

S&P Dow Jones Indices (SPDJI) has launched 14 new African equity indexes, which will cover 13 African markets and come as part of SPDJI’s drive into the African region.

The indexes will allow investors in Africa, as well as foreigners, to invest in the performance of the African equity markets.

The launch brings the total number of indexes launched this year to 29, with all of them covering various segments of the African equity markets.

Last month SPDJI launched six indexes in South Africa covering small and mid-cap companies, property and alternatively weighted versions of main equity indices.

Prior to this, in February, the index provider launched nine indexes on the South African equity market, while also giving Grindrod Bank a license to launch two exchange traded funds on the index, which it subsequently did in April this year.

Alexander Matturri, CEO of S&P Dow Jones Indices, said: “S&P Dow Jones Indices has a long history of providing relevant benchmarks to African investors.  Continuing with this year’s launch of fifteen South Africa indices and now strengthened with today’s extensive offering of over a dozen new regional African indices, S&P Dow Jones Indices now offers investors a comprehensive suite of benchmark and tradable equity indices covering the African continent.”

The S&P All Africa serves as the basis for numerous sub-indices including regional benchmark and tradable indices covering different segments of the continental equity market.  The other thirteen indices launched today include:

 

  • S&P All Africa ex-South Africa: a comprehensive benchmark for the African market excluding South Africa.
  • S&P All Africa Capped: modifies the S&P All Africa, ensuring that the weights of individual countries, sectors and companies are limited
  • S&P All Africa ex-South Africa Capped: modifies the S&P All Africa ex-South Africa, ensuring that the weights of individual countries, sectors and companies are limited
  • S&P East Africa: a comprehensive benchmark for the East Africa region within the S&P All Africa, and includes companies listed in Kenya
  • S&P North Africa: a comprehensive benchmark for the North Africa region within the S&P All Africa, and includes companies listed in Egypt, Morocco and Tunisia.
  • S&P Southern Africa ex-South Africa: a comprehensive benchmark for the Southern Africa ex-South Africa region within the S&P All Africa, and includes stocks from Botswana, Mauritius, Namibia, Zambia and Zimbabwe. 
  • S&P West Africa: a comprehensive benchmark for the West Africa region within the S&P All Africa, and includes companies listed in Cote d’Ivoire, Ghana and Nigeria. 
  • S&P All Africa Select: consists of 100 of the largest and most liquid companies from the S&P All Africa, including 50 South African companies and 50 non-South African companies.
  • S&P All Africa ex-South Africa Select: is designed to be a broad, yet replicable index measuring the performance of the largest, most liquid companies listed in Africa ex-South Africa and companies listed in developed markets that derive the majority of their revenues from the African continent.
  • S&P East Africa 10: consists of 10 of the largest and most liquid companies listed in Kenya. The index employs a 25% single stock cap to reduce concentration.
  • S&P North Africa 15 consists of 15 of the largest and most liquid companies listed in Egypt, Morocco and Tunisia.  The index employs a 20% single stock cap to reduce concentration.
  • S&P Southern Africa ex-South Africa 10: consists of 10 of the largest and most liquid companies listed in Botswana, Mauritius, Namibia, Zambia and Zimbabwe.  The index employs a 25% single stock cap to reduce concentration.
  • S&P West Africa 25: consists of 25 of the largest and most liquid companies listed in Cote d’Ivoire, Ghana and Nigeria. The index employs a 15% single stock cap to reduce concentration

The headline index launched today by SPDJI is the S&P All Africa, a comprehensive benchmark for the African continent. The index combines the constituents of the S&P Pan Africa, S&P South Africa Composite, and S&P Zimbabwe BMI, as well as developed market listed companies that operate purely in or derive a majority of their revenues from the African continent.

 

 

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