MSCI has announced changes to its Standard Pan-Euro and Euro indices. The changes result from the first phase of the implementation of MSCI’s Enhanced Methodology – a rebalancing exercise which takes account of freely floated market capitalisation and increases market coverage of the benchmarks.
The complete pro forma constituent lists have been posted on MSCI’s web site – www.msci.com.
On a pro forma basis, the MSCI Standard Pan-Euro Index will contain 212 securities with an adjusted market capitalisation of e4,600bn, selected from 16 developed market European countries. The Standard Euro Index will contain 111 securities with an adjusted market capitalisation of e2,272bn, taken from the EMU zone.
Note: IPE regrets that the MSCI European range of equity indices were omitted from the tables published in ‘European indices report’ supplement published with the December issue of IPE. We now publish these on page 47.
Bloomberg has introduced four new indices to its family of benchmarks – the Bloomberg European Investable Indices group. Each of the new modified equal-weighted indices represents a different broad market sector.
The new indices were created for use as benchmarks for derivatives, for exchange-traded funds and other financial instruments, the financial data provider said.
The Bloomberg European Investable Cyclical Index (BEICYCLE) tracks large European consumer cyclicals, the Bloomberg European Investable Industrials Index (BEIINDUE) tracks large industrial stocks and the Bloomberg European Investable Staples Index (BEISTPLE) follows large staple stocks. The Bloomberg European Investable Resource Index (BEIRSRCE) tracks large resource stocks.
Tom Secunda, head of global sales for Bloomberg, says the indices were developed as a result of client demand and because of the success of the Bloomberg 500 Index and Pan European Mid Cap Index. “Our plan is to continue developing indices that our customers can use to develop benchmarks,” he says.
Each index is available in both euros and sterling and is rebalanced every six months.
The Dow Jones Industrial Average has staged a strong recovery after plummeting in the wake of the 11 September terrorist attacks in the US. Once again, the blue chip index has crossed the psychological barrier of 10,000.
The first time the DJIA touched 10,000 was on 16 March 1999, Dow Jones Indexes points out, and the first time it closed above that level was 13 days later on March 29.
Ten months later, the index reached its highest point so far when it closed at 11,722.98.
More recently, the DJIA closed above 10,000 on 5 September 2001, ending the session at 10,033.27, but subsequently dropped from the key level. It was 16 days later, on 21 September, that the index reached its low at 8,235.81 as the market tried to assess the impact of the attacks on the US.