Kit Digital Index Weighting Too Small to Boost Demand, SG Says
Kit Digital Inc. (KITD), the provider of software for online video that listed its U.S.-traded shares in Prague on Jan. 25, joined Prague’s main PX (PX) stock index today, becoming its smallest member.
With 2.16 million shares included in the index and a market capitalization of 384.4 million koruna ($20.3 million) on Feb. 26, Kit has a weighting of 0.04 percent within the index of 14 stocks, the Prague Stock Exchange said on its Web site.
“Kit’s weight is too small to significantly boost demand for its shares from investors and funds that mimic the PX index’s composition” in their portfolios, analyst Josef Nemy at Societe Generale SA’s Czech unit Komercni Banka AS wrote in an e-mail today.
Kit shares advanced 0.4 percent to 230 koruna, a second day of gains.
To contact the reporter on this story: Krystof Chamonikolas in Prague at email@example.com.
To contact the editor responsible for this story: Gavin Serkin at firstname.lastname@example.org.