In this week’s column, the ZSE is profiling the ZSE New Industrial Index. The index is part of the ZSE Sectoral indices.
The sectoral indices are designed to represent the performance of Zimbabwean companies, providing investors with a comprehensive set of indices, which measure the performance of the major industry segments of the Zimbabwean economy.
ZSE follows the Global Industry Classification Standard (GICS®) in classifying the listed companies.
The ZSE New Industrials Index tracks the performance of companies which manufactures and distributes capital goods such as building products, electrical equipment and machinery.
It also includes companies that offer transportation services.
Index Calculation Methodology
The ZSE uses market capitalisation weighting methodology in the computation of all indices.
The market capitalisation is an approximation of the market value of the listed entity calculated by multiplying the entity’s last Volume Weighted Average price by the number of securities in issue.
Index Constituencies
The index constituents for the New Industrial Index:
PERFORMANCE
The ZSE New Industrial Index was introduced in January 2020 and was calculated backwards to January 2018 at a base of 100 basis points which is the time where the ZSE benchmark index otherwise known as the ZSE All share Index was first constructed.
The index has gained 8 percent in the year 2022 up to October 25, 2022 to close at 20 481,96 points.
Information provided in this article is for educational purposes and does not constitute financial advice.
You should obtain independent advice from a Registered Stockbroker or Financial Advisor before making any financial decisions.
Please note that past performance cannot be relied on as an indication of future performance.
It is important for all prospective investors to carefully consider their financial situation and consult a financial advisor or stockbroker in order to understand the risks involved and ensure the suitability of their situation prior to making any investment decision.
Source: Herald
