1. Methodology of calculation of DEMTRI
The methodology used for the calculation of the Development & Enterprise Market Total Return Index, DEMTRI, is based on the following approach.
The calculation is undertaken in two steps:
(i)The first step is to transpose the total daily announced dividend payments into index points on the ex-dividend date. This is called XD adjustment to the underlying capital index, i.e the DEMEX.
gi = announced dividend per share of the ith company
wi = the number of ordinary shares issued by the ith company
d = Divisor (base market capitalisation) of the underlying capital index,
(ii) The second step of the calculation uses the figures calculated in step one (XD adjustment). These figures are included in the formula below to calculate the DEMTRI, assuming re-investment of gross dividends.
DEMTRI t = Total return index value today
DEMTRI t - 1 = Total return index value yesterday
DEMEX t - 1 = underlying capital index yesterday
DEMEX t = underlying capital index today
XDt = XD adjustment to underlying capital index today
The DEMTRI will be equal to 100 at market close on August 4, based on the underlying capital index, the DEMEX.
2. Rules for the maintenance of the DEMTRI.
The maintenance of and operational adjustments to the DEMTRI in respect of corporate events, such as new listings or delistings, rights issues, bonus issues, etc will be done in accordance with the rules governing the maintenance of the underlying capital index, DEMEX.