Text: Institute for Advanced Studies, Vienna, 1996. All rights reserved.
[European stock market indexes (up)] |
| WIG | |
| Long name | Warsaw Stock Exchange Index |
| Owner/publisher/sponsor | Warsaw Stock Exchange |
| Number of constituents) | All stocks listed on the main market (39 as of April 1995) |
| Construction principle | Capitalization-weighted total return value ratio (the weight of an individual company is limited to 10%, the weight of a sector is limited to 30%) |
| Base date/base value | April 16, 1991 / 1000.00 |
| Interval of calculation | Daily |
| Source: Warsaw Stock Exchange, 1995. | |
The Warsaw Stock Exchange Index WIG 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 addition to the WIG, the Warsaw stock exchange also publishes
an index for the parallel market (WIRR) and the Warsaw Stock Exchange
Price Index (WIG20). The WIG20 measures the aggregate price change
of twenty domestic stocks positioned best according to the number
of ranking points obtained. 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.
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.
References:
Warsaw Stock Exchange (1995): Warsaw Stock Exchange Indices,
Warsaw Stock Exchange: Warsaw.
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WIG, WIG20: Warsaw Stock Exchange, Warsaw Text: Institute for Advanced Studies, Vienna, 1996. All rights reserved. |
| This page is part of the European Stock Market Indexes Website of the Institute for Advanced Studies in Vienna, Austria. Text by Christian Helmenstein. No part of this page or the European Stock Market Indexes Website may be reproduced, stored in a retrieval system, or transmitted without the prior permission of the copyrightholder(s), subject to the exceptions provided for by law. In any case, proper reference would run: "European Stock Market Indexes Website, Warsaw Stock Exchange Index WIG , Institute for Advanced Studies, Vienna (http://www.ihs.ac.at/fin/finix/direct.html)." | |
| The Institute for Advanced Studies is a member of the CECE Index Committee of the Austrian Futures and Options Exchange, Vienna. For further information on stock market index construction principles (NOT: data sources etc.) and the pricing of ÖTOB-traded derivatives contact the IHS Financial Indicators Research Group. No liability assumed. |
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