Port Moresby, Papua New Guinea – PNGX, Papua New Guinea’s national stock exchange, has announced it will launch six new equity capitalisation indices on 1 November 2019 to enhance the measurement and visibility of the country’s stock market performance.
A stock market index serves as a benchmark of market performance. It is calculated based on the prices of selected stocks and used by investors and fund managers to evaluate returns and market trends.
List of New PNGX Indices:
| Full Name | Short Name | Code |
|---|---|---|
| PNGX PNG Domestic Freefloat Capitalisation Weighting Index | PNGX Domestic Index | PNGXD |
| PNGX Whole of Market Freefloat Capitalisation Weighting Index | PNGX Market Index | PNGXI |
| PNGX PNG Domestic Capitalisation Index | PNGX Domestic Capitalisation Index | PNGXDC |
| PNGX Whole of Market Capitalisation Index | PNGX Market Capitalisation Index | PNGXIC |
| PNGX PNG Domestic Equal Weight Capitalisation Index | PNGX Equal Weight Domestic Index | PNGXDE |
| PNGX Whole of Market Equal Weight Capitalisation Index | PNGX Equal Weight Market Index | PNGXIE |
Index Structure & Use
The three domestic indices (PNGXD, PNGXDC, PNGXDE) will include only PNG-incorporated companies.
The three market-wide indices (PNGXI, PNGXIC, PNGXIE) will include both domestic and foreign-listed companies on PNGX.
Among the six, the PNGX Domestic Index (PNGXD) and the PNGX Market Index (PNGXI) are expected to become the most widely referenced benchmarks.
Chairman’s Statement
“The new indices are another step in the improvement of the PNG market infrastructure. They will allow better measurement of market performance, support the creation of new financial products, attract new investors, and contribute to a more efficient capital market,” said David Lawrence, Chairman of PNGX.
A full technical definition of each index is available in the official attachment from PNGX.
