A JOINT Financial Times FTSE Med 100 index involving the Cyprus, Athens and Tel Aviv stock exchanges was launched officially in Nicosia yesterday.
Five Cypriot listed companies – the Bank of Cyprus, Laiki Bank, Hellenic Bank, Louis Cruise Lines and Tsokkos Hotels — are represented on the new Med 100 index, along with 60 Athens listed companies and 35 Israeli firms.
“This new launch is our attempt to open our markets to international investors,” Cyprus Stock Exchange (CSE) chairman Akis Cleanthous told a joint news conference with his counterparts Panayiotos Alexakis from the Athens bourse and Robby Goldenberg from the Tel Aviv exchange.
Cleanthous said the move was part of a long-term CSE strategy, which will encompass changes brought about as a result of Cyprus’ EU accession next year. He also said the Med 100 would encourage the performance of local companies as they compete to participate in the new index.
Greece has the highest weighting in the new euro-driven index at 61.06 per cent, followed by Israel with 36.37 per cent and Cyprus with 2.27 per cent. Based on May 30 prices, the index has a free-float capitalisation above 90 billion euros. Its largest constituent with a 22.7 per cent weighting is Israel’s Teva Pharmaceutical followed by Greece’s OTE Telecom.
Other Greek companies included in the Med 100 index include banks such as Alpha, National and Eurobank, telecoms firms Vodafone Panafon and Cosmote and construction firms Michaniki, Aktor and Hellenic Technodomiki.
Alexakis said the three exchanges were hopeful that others in the region would also join the index.
“We believe in the present and future of this region of the world,” he said. “It’s very important for this region to develop and give a bigger and more integrated stock exchange for investors inside and outside the region.”
Israeli participants include Bank Hapoalim, Bank Leumi, Migdal Insurance, Partner Communications, Super Sol, Israel Discount Bank and Agis Industries. Goldenberg said the Med 100 would be a benchmark for investing in the region and that it would pave the way for expansion for co-operation between the three exchanges.
“We hope to see additional countries in the Mediterranean joining in the near future,” he added.
The FTSE MED 100 benchmark will be calculated in real time from 9.45am to 5pm, a time spread that covers the trading hours of all three exchanges involved. Its base will be 5,000 points.
The index, which will be reviewed semi-annually in May and November, may also serve as the underlying instrument for the launch of new derivatives products at a later date.
“We aim to establish a transparent and rules-driven regional index which will be recognised by the international investment community,” said CSE Director-general Nondas Metaxas.
