Many investors are likely to question the regulators whether the composition of the MPI should require further revisions or not.
Given below the definitions of the two indices as per Wikipedia.
The All Share Price Index is one of the principal stock indices of the Colombo Stock Exchange in Sri Lanka. ASPI measures the movement of share prices of all listed companies. It is based on market capitalisation. Weighting of shares is conducted in proportion to the issued ordinary capital of the listed companies, valued at current market price (i.e. market capitalisation).
The Milanka Price Index is one of the principal stock indices of the Colombo Stock Exchange in Sri Lanka. It is composed of a select group of 25 stocks, a list which is reviewed each quarter, as opposed to the Colombo Stock Exchange's "All Share Price Index", which uses all of the ~250 stocks on the exchange to calculate an index value.
Recent Changes to MPI
Sri Lanka’s Milanka Price Index (MPI) was changed from July 1 for the second half of 2010, by adding three financial, two manufacturing and a healthcare group stocks, the Colombo Stock Exchange (CSE) said. MERCHANT BANK OF SRI LANKA (MBSL), JANASHAKTHI INSURANCE, PAN ASIA BANKING CORPORATION (PABC), CHEVRON LUBRICANTS, ACL CABLES and NAWALOKA HOSPITALS would be the latest addition on the MPI list for the second half of 2010.
* Companies that have been dropped from the MPI include AITKEN SPENCE, C W MACKIE, CEYLINCO INSURANCE, CEYLON TOBACCO, HOTEL SERVICES (CEYLON) and TOKYO CEMENT.
* The Milanka index, one of the two main indices on the Colombo Stock Exchange, tracks the 25 most liquid stocks weighted on market capitalisation during the previous year.