GENERAL: NZX: NZX Index clarification

19 Feb 2010 4:53 pm

NZX 19/02/2010 GENERAL

REL: 1653 HRS NZX Limited

GENERAL: NZX: NZX Index clarification

NZX Index clarification

19 February 2010

The Index Group at NZX distributes a monthly index memo to data vendors, fund managers and market participants. These recipients include Bloomberg, Thomson Reuters and Iress.

The ranking definition that applies to entry to the NZX 50 Index is typically based on ranking by New Zealand free float market capitalisation calculated from the previous six months' average price and the latest free float index shares.

During the six-month period preceding the index calculation, a significant corporate event occurred for Allied Farmers Limited (ALF), this being the acquisition of Hanover Finance.

Whilst on a six-month calculation ALF would meet the criteria, the significance of the Hanover acquisition has distorted the six-month ranking. A decision has been taken not to include ALF in the NZX 50 at this time.

NZX Index Group has determined that it will evaluate this position after a further appropriate trading period has elapsed. End CA:00191425 For:NZX Type:GENERAL Time:2010-02-19:16:53:44

More announcements for NZX