BIGC now part of the FTSE SET Large Cap Index

Following the merger of PTT Chemical (PTTCH) and PTT Aromatics (PTTAR) forming PTT Global Chemical, effective from the start of trading on Friday 21 October 2011, there naturally will be an impact on the SET Large Cap indices and on BIG C Supercenter’s stock price.

As a result of this Big C Supercenter (BIGC) will replace PTTAR in the FTSE SET Large Cap Index.

Impact:

BIGC will likely have increased buying because of the necessary portfolio rotation of mutual funds and ETF’s both locally and internationally that are invested in Thailand.

What is BIGC?

BIGC is the second-largest discount chain store in Thailand with 113 stores including Carrefour outlets as of Dec-10 (after Tesco-Lotus). Most of the stores offer big retail rental space for both large and small tenants. Therefore, BIGC can also be viewed as a retail property developer. The company’s strategy focuses on everyday low price concept.

See below for the note from the FTSE:

• The addition of Big C Supercenter (BIGC) and deletion of PTT Aromatics and Refining (PTTAR) is estimated to have a total two way index turnover of 2.26 per cent

 • Big C Supercenter (BIGC) is expected to have an index weight of 1.13 per cent

 • PTT Aromatics and Refining (PTTAR) before the merger accounted for 1.76 per cent of the FTSE SET Large Cap Index

 • The Oil & Gas sector will see the largest change in index weighting up 2.13 per cent to 23.34 per cent, with the Chemical sector will see the largest fall in index weighting down 2.42 per cent to 2.44 per cent

If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.

Leave a Reply

Your email address will not be published. Required fields are marked *