The US computer giant Apple will make its entry in the Dow Jones, the star of the New York Stock Exchange which includes 30 companies index, announced Friday administrator of this platform to exchange shares.
This decision will increase the weight of the technology sector in the index as Apple joins Microsoft, IBM, Intel and Cisco, says the paper.
Replacing the select club of the thirty most important titles of Wall Street, created in 1896 but has undergone many changes since then, will be held at the close of trading on March 18, accurate meanwhile agency Efe.
The Dow Jones Industrial Average is a favorite indicator of the stock market in New York. Many traders, however, are more inclined selective S & P 500 because the range of companies that includes is greater than the Dow Jones.
Apple is considered the largest market capitalization company in the world. It has reached 746,000 million, twice Microsoft and other market giants like Exxon Mobil.
The firm, which grew to a record market capitalization of 775,000 million dollars last month, currently trades on the Nasdaq, which are integrated many technology companies.
“Apple is a clear choice for the average of the Dow Jones Industrial Average, measuring more recognized securities market,” said committee chairman indicators Dow Jones Indices, David M. Blitzer.
The select group of Dow Jones
But it was not before, for technical reasons, since this indicator weights the share price, and until the middle of last year the shares of the company were with a value close to $ 700.
“The Dow added Blitzer is a weighted index, so that securities with an extremely high price often distort the indicator, while stocks with a low price have less impact.”
In June, however, Apple decided to make a “split” in their titles and turned into seven each original share, which, among other consequences, made him rethink the committee of Dow Jones convenience of incorporating Apple that group, Efe added.
“The ‘split’ Apple led its share price down, closer Average price in the Dow Jones Industrial Average,” said Blitzer to explain why now and not before, the committee decided to add titles signature to that group.
Attached to this, the firm Visa, another member of the Dow Jones and is also integrated the technology, not the financial sector, will also have a “split” in their titles on March 18, which will reduce the influence of that sector weighting of the index and, therefore, leave room for Apple.
The incorporation of Apple reinforces the importance of the technology sector in the NYSE. In 1999 Microsoft and Intel manufacturer of computer components were added, and in 2005 it was the turn to Cisco.
And also confirms the fact that the US economy every day is being more driven by young companies, a phenomenon that does not occur in other countries with such intensity as here.
The Dow Jones Industrial Average was born in 1896 but only after 1928 were formed with thirty companies, which have changed according to a number of features.
It is a club that takes into account, as its administrators, “the reputation (of the company) demonstrating sustained growth, which will attract the interest of a large number of investments and a representative of the sector”.
Despite the announcement today, there are still voices that downplay not only the decision of the Dow Jones Industrial Average, but indicate that this indicator is losing importance in determining how the market is behaving.
Many operators prefer the S & P 500 because it has a wider range of companies, 500, and, like the Dow Jones, incorporated companies listed on the New York Stock Exchange (NYSE) and NASDAQ Stock Market signatures.
“The fact that so far Apple has not entered the Dow Jones shows how little value of this indicator,” he told CNBC financial Dan Greenhaus, the investment firm BTIG.