TA-100 Index

The TA-100 Index, typically referred to as the Tel Aviv 100, is a stock market index of the 100 most highly capitalised companies listed on the Tel Aviv Stock Exchange (TASE). The index began on 1 January 1992 with a base level of 100. The highest value reached to date is 1247.92, in January 2011.^[1]

Overview

The index is maintained by the Tel Aviv Stock Exchange and is calculated in real-time during trading hours and published every 30 seconds. The index combines the companies that are listed in the TA-25 and TA-75 indices.^[2]

TA-25 Index

The TA-25 Index is the TASE's flagship index. It was first published in 1992 under the name "MA'OF Index". The TA-25 index tracks the prices of the shares of the 25 companies with the highest market capitalization on the exchange. It serves as an underlying asset for options and futures, Index-Linked Certificates and Reverse Certificates traded on the exchange and worldwide. The index also began on 1 January 1992 with a base level of 100.

TA-75 Index

The TA-75 is a share index of the 75 most highly capitalised companies listed on the Tel Aviv Stock Exchange, which are not included in the TA-25 index. The index began in 1999 with a base level of 100.

Weighting

Since February 2008, the TA-100 is calculated using a free float method, the total market capitalization of the companies weighted by their effect on the index, so the larger stocks would make more of a difference to the index as compared to a smaller market cap company. The basic formula for any index is (be it capitalization weighted or any other stock index).

• Index level= Σ(Price of stock* Number of shares)*Free float factor/ Index Divisor.

The Free float Adjustment factor represents the proportion of shares that is floated as a percentage of issued shares. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.

A company’s weight in the index has an upper-limit of 9.8%, the weight of a company that should be higher is limited to 9.8% and the rest is divided between the other constituents of the index. Since October 2007 this restriction has set the effective weight of Teva Pharmaceutical Industries at 9.8%.

To be included in the TA-25 index the company’s stock also need to adhere to the following requirement: Meet a public holding threshold of at least 25% and a minimal value of 600 million NIS (to ensure that there is a significant Free float holding, which is not controlled by insiders).

The constituents of the indices are determined twice a year; on the first trading day in January and in July. The largest companies in the TA 100 index are promoted to the TA 25 index if their market capitalisation is 20% more than a current company.

Constituents

TA-100 - Index Components - As of 10/08/2011

Former members of the index

• Elite - Merged with the Strauss Group
• Agis Industries (1983) Ltd. - Acquired by Perrigo (now known as Perrigo Israel Pharmaceuticals)

References

External links

• Reuters page for .TA100
• TASE English web site
• Bloomberg page for TA-100:IND