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1.  The price index of DEM is called DEMEX.


2.   Eligible Shares


To be eligible for inclusion in DEMEX, a company must be incorporated  in Mauritius. Any other company is ineligible.


The shares must be listed on the Development & Enterprise Market.


Only ordinary shares are included in the DEMEX.


Where a company’s ordinary shares are issued partly paid or nil paid and the call dates are already determined and known, the market price, for the purpose of calculating its market capitalisation, is adjusted so as to include all such calls (i.e., the fully paid price).


Only companies whose ordinary shares are listed and traded on DEM and which meet all the requirements of the DEM Rules are included in the calculation of DEMEX. 

3.  The initial market capitalization of DEMEX was calculated at the close of the trading session on August 4,2006 and will be determined as follows:


      where   i is the ordinary share of the ith company
                  pi = closing price of the ith company on the DEM on August 4.
                  ni = number of ordinary shares issued by the ith company.
      Only companies which would trade on August 4 were included in the initial market capitalization.

4. The base market capitalization of DEMEX was set at the initial market capitalization of DEMEX at market close on August 4, 2006.

5.  DEMEX was set at 100 at market close on August 4 and was afterwards calculated as follows:

            DEMEX = Current Market Capitalisation of all Listed ordinary shares    x 100
                            Base Market Capitalisation of all Listed ordinary shares

6.  In the case of the listing of the ordinary shares of a new company on the DEM after the launch, the base market capitalisation of DEMEX will be adjusted to reflect the initial market capitalization of the new listing on the day the newly admitted security is traded. The closing value of DEMEX, however, will remain unchanged following this adjustment

The base market capitalisation of DEMEX will be adjusted to reflect rights issues and other capital restructurings.


Adjustment of Base Market Capitalisation


The method used to adjust the base market capitalization is as follows:


New Market Capitalisation after adjustment divide by the old Market Capitalisation then multiply with the old Base Market Capitalisation. A new Base Market Capitalisation will be obtained which will replace the old Base Market Capitalisation. After replacing the old Base Market Capitalisation with the new Base Market Capitalisation the DEMEX will remain the same because denominator has been adjustment accordingly.


The purpose of the adjustment is to neutralise the change, so that the change has no effect on the original DEMEX.


New Shares


If a constituent issued new shares in the current period which were not present in the previous period, the index algorithm subtracts newly issued capitalisation from total capitalisation in the current period. This equalises the number of shares in both periods so the DEMEX reflects only price changes.


A cancellation of shares by a constituent is treated as a negative new issue. Shares created by the conversion of other securities are treated as new issues.


Rights Issues


When shares begin trading ex-rights, the theoretical share price falls by the intrinsic value of the rights. Because the DEMEX follows only the shares and not the rights, which may be traded separately, an adjustment is needed to prevent the index from dropping. The method is similar to that of a new issue. In both cases, the theoretical price is the weighted price of the shares at the instant after the change.


Dividend In Specie


Dividend in specie (in kind) means dividends not paid in cash. Such dividends are paid out in the form of assets / securities of companies owned by the issuer and are in a given amount. 


Bonus Issues, Stock Splits and Reverse Splits


The number of shares created by the bonus issue or stock split is used to adjust the shares outstanding at the ex-bonus/split date. Similarly, a reverse split is recorded as a negative stock split while reducing the shares outstanding by the amount of the negative split. In the case of stock splits, as prices drop by the split ratio, total capitalisation does not change at the time of the split and no adjustment to the DEMEX is needed. Stock dividends, also known as bonus issues, have the same effect as splits and no adjustment to the DEMEX is therefore needed.


Cash Dividends


Cash dividends can affect share prices, but the industry norm is not to make any adjustment for such dividends in the DEMEX. Cash dividends on a per share basis are recorded at the ex-dividend date, using gross cash dividends.


Suspension of Dealing


In the event that a security is suspended, the constituent may remain in the DEMEX, at the price at which it is suspended, until suspension of dealing is removed.


Amalgamation (Merger), Restructuring or Takeovers


If an amalgamation (merger), Restructuring or Takeovers results in one security being absorbed by another constituent, the resulting company shall remain a constituent of the DEMEX.


If a constituent company is taken over by a non-constituent company, the original constituent shall be removed.


Adjustments for Corporate Actions


On Cum-date following close of Market the reference price of the security is adjusted to account for the Corporate Actions: Dividends, Rights Issue, Bonus Issue, Share Split, Dividend in Specie. The Ex- reference price is adjusted to reflect its tick size as per the ATS Procedures. The price spread for the next session is based on the Ex- reference price.




Ex Dividend Ref Price = Cum Dividend Price – Amount of Dividend


Rights Issue


Ex-Rights Ref Price =


rights issue formulae

Bonus Issue


Ex-Bonus Ref Price =


                                  Cum-Bonus Price x Number of shares held as per ratio of Bonus Issue

                         Number of Shares held + Number of new shares receivable ( as per ratio of Bonus Issue)


Share Split


Ex-Share Split Ref Price =      

                                              Cum-Share Split Price

                                                         Split factor


Dividend in Specie


Ex-Dividend in Specie Ref Price = Cum-Dividend in Specie Price – amount of Dividend in Specie



Increase in Share Capital.


Ex Ref Price = (Cum Share Price x No of Shares in Issue) + (New Shares x Issue Price)

                                         No of shares in Issue + No of New Shares


Decrease in Share Capital


Ex Ref Price = Cum Share Price x No of Shares in Issue

                          No of Shares in Issue – Shares Cancelled


Determination of Right Price


Right price = Price of Security before trade date of Rights – Issue Price per share


Partly Paid Share


Partly Paid Share Price = Price of Security before trade date of partly paid share – Amount of call payment


Any other adjustment to the price of a security in respect of entitlements not mentioned above will be carried out based on international practice and standards and the market will be informed accordingly