Copenhagen Stock Exchange Index

Two official indexes are calculated by the Copenhagen Stock Exchange: the KFX and the Total Share Index. Since its introduction in 1989, the KFX became the leading representative of the price dynamics of Danish stocks. Adjustments of the index are aimed at securing that the KFX is not altered as a result of stock price changes other than those originating from changes in supply and demand.

The index portfolio is determined in November each year from among the stocks included in the calculation of the Total Share Index. Since unit trusts, foreign companies, and certain holding companies are not included in the total index, they are not eligible for the KFX either. The selection procedure is as follows:

  • For each trading day during the 12-month period prior to the selection date the 25 most active stocks are ranked according to turnover; for initial public offerings and new classes of stock that are listed for at least 40 trading days prior to the selection date, the number of days during the reference period in which the stock is ranking among the 25 most active stocks is multiplied by the number of days of the year and divided by the number of days that particular stock has been listed on the Copenhagen Stock Exchange. This procedure ignores the first five days of listing, however, since after the first listing a non-representative high trading activity may occur in the respective stock.

  • On the basis of the daily ranking during the reference period, the final list of the 25 most liquid stocks is prepared. This list contains the stocks which are most often ranking among the top 25 stocks according to liquidity.

  • From this "basic portfolio", 21 stocks are selected according to their market capitalization to constitute the so-called "active portfolio" of the KFX. Index adjustments are carried out in the case of stock replacements, suspensions from trade that last for a longer or indefinite period of time, seasoned issues, and mergers and acquisitions.
KÝbenhavns FondsbÝrs Index (Copenhagen Stock Exchange Index), KFX: KÝbenhavns FondsbÝrs AS (Copenhagen Stock Exchange). Text: Institute for Advanced Studies, Vienna, 1998. All rights reserved.

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