The main index of the Lisbon Stock Exchange will change its name. PSI-20 will lose its number and will only be referred to as PSI from March 2022 when it will conduct its annual review. The announcement was made this Thursday by Euronext, which operates European exchanges like Portugal.
“Euronext announces that the name of the Portuguese National Benchmark Index will change from PSI-20 to PSI. The methodology for compiling the index will also be adjusted in order to increase the liquidity and efficiency of the index and better meet the needs of users, ”the statement said. company in a statement.
The name comes from a combination of a Portuguese stock index (in other words, a Portuguese stock index in English) with the estimated number of listed companies it should have. However, for a long time there were no 20 on the list, but only 18 – the minimum allowed by the index rules.
In addition to the fact that the title no longer contains this “obligation”, the rules themselves will be changed. “Adjustments to the PSI methodology will include determining the minimum size of companies that can be included in the index during each quarterly and annual review (market capitalization of € 100 million in free float) and removing the minimum number of participants,” he explains.
The changes are the result of a public consultation process that has been inaugurated with national and international stakeholders. “The new name and methodology are intended to make the index more attractive, improve quality and, as a result, increase user confidence,” adds Euronext.
(News updated at 17:20)
