Zimbabwe Stock Exchange(ZSE) has announced the introduction of Agriculture and Exchange Traded Fund indices.
It aims to use these indices to improve the performance tracking of listed counters.
The profiles of the indices are with effect from April 1, 2022. This brings the total number of sectoral indices to ten while total market indices add to fifteen.
The Agriculture index tracks the performance of companies in the agricultural sector.
The ETF index is tailor-made to measure the trading performance of the three listed ETFs. In separate announcements, the ZSE said that the base value for the two indices was 100, but the ETF index back-test to January 1, 2022.
ZSE said that the introduction of sectoral indices followed the Global Industry Classification Standard (GICS) adoption in the classification of listed companies.
It added that the indices provided the market with better performance apparatus, and will assist in choosing sector-based investing strategies.
The new ZSE indices were classified to provide the market with better tools for performance measurement and assist in choosing sector-based investment strategies.
The indices at the ZSE include material index, financial index, industrial index, consumer discretionary index, real estate index, information and communication, and technology service index.
Further classification was also by market cap.
This formed the ZSE all share index, top 10 investable indexes, top 10 indexes, top 15 indexes, top 25 indexes, medium cap index, and small-cap index.
The ZSE uses the market capitalization weighting method to compute all indices. The market capitalization of a listed company is an approximation of its value on the market.
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