WIG and WIG20 Indexes
The Warsaw Stock Exchange WIG Index (Bloomberg’s ticker: WIG:IND) was the first index to be introduced after the reopening of the Warsaw Stock Exchange (Warsaw Stock Exchange, 1995).
It is calculated as a total return index for the main market once per trading day after each session. The weight of an individual stock according to its market capitalization is limited to 10% of the index sample. Furthermore, a single sector may not account for more than 30% of the index.
The WIG is adjusted for all technical measures using a chaining factor. The index is regulary revised every three months, mainly to account for the introduction of new stocks.In order to avoid a dominating influence of the largest and most actively traded companies on the index, the maximum number of ranking points attainable equals 150 times the number of ranking points obtained for a stock with average turnover and market capitalization.
Based on this modified record of ranking points, the number of shares admitted to enter the index portfolio is determined, thereby assigning a specific weight to each index stock. For current WIG Index components look here.
In addition to the WIG, the Warsaw stock exchange also publishes an index for the parallel market (WIRR) and the Warsaw Stock Exchange Price (WIG20 Index). The WIG20 (Bloomberg’s ticker: WIG20:ING) measures the aggregate price change of twenty domestic stocks positioned best according to the number of ranking points obtained.
The WIG20 index is a modified capitalization-weighted index of 20 Polish stocks which are listed on the main market. The index is the underlying instrument for futures transactions listed on the Warsaw Stock Exchange. The base value was set to 1000 as of April 16, 1994.
The formula for determining the number of index points draws upon both the turnover and market capitalization during the month preceding the quarterly revision of the index sample in a proportion of 60:40. In addition, to qualify as a new stock in the index sample, a stock must have ranged among the twenty leaders in at least two of the last three months in terms of turnover. For current WIG20 Index components look here.
Sources:
[http://www.gpw.pl/zrodla/gpw/spws/portfele/wig20_en.htm]
[http://www.bloomberg.com/apps/quote?ticker=WIG20:IND]
[http://www.bloomberg.com/apps/quote?ticker=WIG:IND]
[http://www.ihs.ac.at/fin/finix/wigdescrip.html]
