Regional bourse BRVM rebalances two major indexes
The WAEUM-focused regional stock exchange BRVM announced the reconfiguration of its major indices, namely the BRVM 30 and the BRVM Prestige.
The BRVM 30 index, a key performance indicator for the 30 most liquid stocks, undergoes quarterly changes based on specific criteria. For the first quarter of 2024, the composition of the index has been adjusted. The inclusion of Air Liquide, Eviosys Packaging Siem, Alios Finance, and Uniwax CI reflects sustained investor activity.
Meanwhile, Oragroup has been included in the BRVM Prestige index (comprising the top 10 stocks with the highest capitalizations), displacing the ETI stock, which, despite its prior favorable standing, has been excluded.
Points clés à retenir
Index rebalancing is a crucial process of adjusting the composition of a market index, ensuring it's reliable and relevant. Rebalancing can cause significant shifts in trading volumes, affecting stock prices, sector trends, and broader market sentiment. For the BRVM 30, Selection is contingent upon achieving profitability in three of the past five financial years, supported by certified financial statements from the preceding five years. The criteria consider the average transaction amount over the preceding three months, which must exceed the median of daily transaction amounts for all securities. Additionally, securities must have a trading frequency consistently above 50% during the three-month study period.
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