The main index of the Lisbon Stock Exchange will change its name. The PSI-20 will lose its number and be called the PSI only as of March 2022, when it does its annual review. The announcement was made Thursday by the company that operates European exchanges such as the Portuguese stock exchange Euronext.
“Euronext announces that the Portuguese national benchmark index will change its name from PSI-20 to PSI. The index methodology will also be modified in order to improve the index’s liquidity and efficiency and better meet the needs of users,” notes the company in a statement.
The name came from the combination of a Portuguese stock index (in other words, a Portuguese stock index, in English) with the indicative number of listed companies that they should have. However, long ago there were not 20 listed, but only 18, which is the minimum allowed by the index rules.
In addition to not having this “obligation” in the title, the rules themselves will be subject to changes. “Amendments to the PSI Index methodology will include setting the minimum size of companies that can enter the index at the time of each quarterly and annual review (market capitalization €100 million in free circulation) and removing requirements for the minimum number of components,” he explains.
The changes result from a public consultation process that has been opened with national and international stakeholders. Euronext adds: “The new name and methodology are designed to increase the attractiveness of the index, improve quality and thus increase user confidence.”
(news updated at 5:20 pm)
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