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To: IceShark who wrote (4580)	8/27/1998 7:53:00 PM
From: Joseph G.	Read Replies (2) \| Respond to of 86076

<<CARACAS, Aug 27 (Reuters) - The Caracas Stock Exchange is considering a change in the way its general stock index (^IDC - news) and closing prices are calculated after a wave of complaints about a new system that went into effect on Monday. Brokers have complained that the new methodology distorts closing prices and is not suited to the current market environment in which trading volumes have been razor-thin. ''A modification is being discussed by the board. We'll have to wait and see if it is approved,'' a bolsa spokesman said. Under the new methodology, instead of taking the last trade as the closing price, the bolsa uses an average. For stocks which registered more than 24 eligible trades, the closing price is based on an average of the last 12 trades. For those which registered between 12 and 24 trades, the closing price is based on an average of the last six. In cases where a stock has registered fewer than 12 eligible trades, the closing price is the same as the previous day's close. ''This makes no sense at all, there are far too many stocks which don't meet the volume requirements,'' said Banesco broker Simon Brad. Turnover on the exchange have rarely surpassed $3 million in recent weeks, and trading is heavily concentrated on a handful of liquid stocks. As a result of the new methodology, closing prices and the (^IBC - news) index do not reflect real price movements, brokers said. On Wednesday, for example, preliminary data from the exchange showed that the general index had plunged 4.6 percent to 3115.44. After applying the new methodology, the official close showed a drop of just 1.21 percent to 3225.91.>>