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Facebook, Alphabet shifted in sector classification system

Reuters  |  SAN FRANCISCO 

By Noel Randewich

SAN FRANCISCO (Reuters) - S&Indices and said on Thursday they would rename their Telecommunication Services Sector and add , , and to the newly broadened category.

In an overhaul of the Global Industry Classification Standard, or GICS, an industry taxonomy widely used by investors, the Telecommunication Services Sector will be expanded and renamed Communication Services, S&Indices and said in a statement.

The new classification puts Facebook, and parent - companies whose explosive growth has helped propel a stock-market rally - alongside traditional telecom players including and .

Indexes including the S&500 are a guide for trillions of dollars of capital worldwide, including index-tracking, exchange-traded funds (ETFs). Many of those funds track sector-specific indexes and could be affected by the GICS changes.

S&Indices and said in November 2017 they were planning changes to the categories and that they would be implemented after the close of on Sept. 28, 2018.

The updates are meant to reflect changes to industries resulting from technology and acquisitions.

Also moving to the newly named Communications Sector are and , both currently part of the Sector.

and , both currently in the Consumer Discretionary Sector, will also join the Communications Sector.

Comcast and currently fall under the Consumer Discretionary Sector, while and are currently in the Sector.

(Reporting by Noel Randewich; Editing by and Chris Reese)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 06:36 IST