Dow Jones Indexes has announced its global Indices have increased coverage of developed markets from 80% by market capitalisation to 95% and that stock weights have shifted from full market cap to free-float. America, Australia , Canada, Europe, Hong Kong and Singapore will all enjoy the enlarged coverage and according to Michael Petronella, managing director of Dow Jones Indexes, the number of stocks covered by all the Global Indexes has risen from 3,000 to 5,500.
Free-float calculations are more representative of the market as each company in the index is weighted by shares available to investors opposed to shares issued. Government holdings exceeding 5% of total market value and block holdings by companies and individual investors are excluded from free float calculations and some companies in the Global Indexes have seen their weightings fall. HSBC and pharmaceuticals company Astrazeneca had 100% weightings and these have fallen to 92% and 87% respectively.
Dow Jones has added a further 18 market sectors to its existing 10 economic sectors, 40 industry groups and 70 sub groups.