Move over TA-25, and say hello to the TA-35; stock exchange to update main indexes

Several other indexes will be updated as well, and three new ones will be added to the mix.

By
January 28, 2016 16:47
1 minute read.
haredi stock exchange

A haredi man trades stocks in Simple Trade’s shared workspace in Ramat Gan. (photo credit: SIMPLE TRADE)

The Tel Aviv Stock Exchange is planning on expanding its main indexes, it announced Wednesday evening, creating broader, more inclusive categories for its benchmarks and retiring the famous TA-25 and TA-100 indexes.

The TA-25, which includes the top 25 companies on the exchange, will add another 10 companies to the mix in the new TA-35. The TA-75, which included the 75 largest companies after the TA-25, will become the TA-90. The index combining the two will grow from the TA-100 to the TA-135.

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Several other indexes will be updated as well, and three new ones will be added to the mix.

Because many institutional investors and casual investors looking for an easy way to “invest in Israel” simply choose one of its flagship indexes, the makeup of the top indexes is important in terms of directing investments and liquidity in Israel’s market.

The move may also be a sign of the market’s maturation as it holds a greater number of large companies.

“The new methodology shall improve indices stability and significantly reduce the risk of index-trackers and investors, who manage directly NIS 35 billion in TASE indices,” the exchange said in a statement.

According to the TASE, the new recommendations include updated methodologies for all indexes, which 100 representative from over 40 organizations formulated over the course of six months.

Though the proposal was published this week, it will not be finalized until a comment period that lasts through February 10, at which point the TASE board will vote on the changes.

Once approved, the changes will be implemented gradually in monthly steps over the course of a year.


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