FIRST-EVER INDEX OF BLUE-CHIP STOCKS
FROM EURO-ASIAN EXCHANGES IS LAUNCHED BY
DOW JONES INDEXES, Federation of Euro-Asian Stock Exchanges
Dow Jones FEAS Titans 50 Equal Weighted Index
to Track the 50 Largest Stocks Listed in FEAS Region
New Gauge Expands Dow Jones FEAS Index Family to Four
LONDON (30 November, 2011)— Dow Jones Indexes, a leading global index provider, and the Federation of Euro-Asian Stock Exchanges (FEAS) today announced the launch of the first blue-chip index derived from Euro-Asian stock exchanges, the Dow Jones FEAS Titans 50 Equal Weighted Index.
An equal-weighted measure of the 50 largest stocks traded on FEAS-member exchanges, the new gauge is designed to serve as the basis for financial products such as funds and structured products.
With its launch today, The Dow Jones FEAS Titans 50 Equal Weighted Index becomes the fourth member of the Dow Jones FEAS Index family; started in 2009, the index series measures the performance of companies across the Euro-Asian region. Earlier this year, the Bucharest, Palestine, Egypt and Kazakhstanexchanges were added to the Dow Jones FEAS Index universe, pushing the current total to 16.
"The introduction of this new index, comprised of 50 blue-chip stocks traded on Euro-Asian exchanges, is significant for market participants seeking a trustworthy tool to help them measure investment opportunities in an increasingly appealing region," said Michael A. Petronella, President, Dow Jones Indexes. “The Dow Jones FEAS Titans 50 Equal Weighted Index could play an important role in adding to the transparency and liquidity in these burgeoning capital markets.”
“FEAS has grown from 12 members 16 years ago to 34 members and 14 affiliate members in 28 countries; today FEAS covers a vast area from Mongolia in the East to Croatia in the West. At FEAS, we attach great value to visibility and transparency, and the Dow Jones FEAS Indexes, designed to measure the performance of companies across the Euro-Asian region, is the first of its kind. With the launch of the Dow Jones FEAS 50 Titans, we hope to increase both the investment in the region and the products based on these indexes in the near future," said Huseyin Erkan, chairman & chief executive officer, Istanbul Stock Exchange & president, FEAS.
The index universe is defined as all stocks in the Dow Jones FEAS Composite Index. Exchanges represented in the index are: Abu Dhabi (UAE), Almaty (Kazakhastan), Amman (Jordan), Banja Luka (Bosnia and Herzegovina), Belgrade (Serbia), Bucharest (Romania), Cairo (Egypt), Istanbul (Turkey), Karachi (Pakistan), Manama (Kingdom of Bahrain), Muscat (Oman), Nablus (Palestine), Sarajevo (Bosnia and Herzegovina), Skopje (Republic of Macedonia), Sofia (Bulgaria) and Zagreb (Croatia).
The ranking is calculated by weighting each stock’s float-adjusted market capitalization at 60%, sales/revenue at 20% and net income at 20%. The top 50 stocks by final rank are selected as index components.
The index is equal-weighted, with each component’s weight set to 2%. Weights are reviewed on a quarterly basis, returning to 2% using price-based weightings. And the index components are reviewed annually in May.
Calculation of the Dow Jones FEAS Titans 50 Equal Weighted Index began on November 2, 2011, with real index history available daily from this date forward. Back-tested historical data have been calculated daily back to December 31, 2004, the date at which the index base value was set at 1000.
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About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV; www.newscorp.com).
“Dow Jones®”, “Dow Jones Indexes”, “Dow Jones FEAS Titans 50 Equal Weighted Index” and all other index names listed above are service marks of Dow Jones Trademark Holdings LLC (“Dow Jones”), and have been licensed for use by CME Group Index Services LLC (“CME Indexes”). “Titans” is a service mark of CME Indexes. The Dow Jones FEAS Indexes are published pursuant to an agreement between CME Indexes and the Federation of Euro-Asian Stock Exchanges. “FEAS” is a trademark of the Federation of Euro-Asian Stock Exchanges. Investment products based on the Dow Jones FEAS Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the Dow Jones FEAS Indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
The Dow Jones FEAS Titans 50 Index was first published on November 2, 2011. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back-tested performance information is purely hypothetical and is solely for informational purposes. Back-tested performance does not represent actual performance, and past performance is not indicative of future results.
FEAS is an organization composed of 34 stock and commodity exchanges, and 14 affiliate members in 28 countries. FEAS was established on 16 May 1995, the mission of FEAS is to create fair, efficient and transparent market environments, with little or no barriers to trade, between the FEAS members and their operating regions. Harmonization of rules and regulations and adoption of new technology, for trading and settlement, by member securities markets, will facilitate the objectives of FEAS by promoting the development of the member markets and providing cross border trading opportunities for securities issued within FEAS member countries. FEAS' permanent secretariat is located in Istanbul, Turkey.