Indices

The JSE utilizes indices to measure the performance of the market and subsets of the market overtime. The JSE currently has nine indices:

• JSE Index: measures the performance of all the companies listed on the Main Market
• JSE All Jamaican Composite Index: measures the performance of only the Jamaican companies listed on the Main Market
• JSE Select Index: measures the performance of fifteen most liquid ordinary shares listed
• JSE Junior Market Index: measures the performance of all the companies listed on the Junior Market
• JSE Combined Index: measures the performance of all the companies listed on the Main Market and Junior Market
• USD Equities Market Index: measures the performance of the securities listed on the USD Equities Market
• JSE Cross Listed Index: measures the performance of only the foreign companies listed on the Main Market
• JSE Finance Index: measures the performance of only the financial companies listed on the Main Market and Junior Market
• JSE Manufacturing and Distribution Index: measures the performance of only the manufacturing and distribution companies listed on the Main Market and Junior Markets

The JSE uses the weighted average market capitalization method to calculate the index. The index is calculated by dividing the aggregate market capitalization by a base divisor. The market capitalization of each company is the product of its issued shares and its market price.  The greater a company’s market capitalization, the greater the weight it carries in the composition of the index. The formula to compute the index is as follows:  market capitalization / base divisor.