The GICS classification of the Danish equity market is ready and the market will thus have a few months to get used to the new industry classification before it enters into effect.
The new industry classification may be downloaded at the Exchange's web site, click on The Market. Here you will also find a description of all the sub-industries.
The companies are classified at four different levels. The top level comprises 10 sectors, the second level comprises 23 industry groups, the third level comprises 59 industries and the fourth level 123 sub-industries. The companies are classified according to the main activity generating the greater part of the company's earnings.
At present, Novo Nordisk A/S and Vestas Wind Systems A/S are, for instant, placed in the same sector, namely Industry. Under GICS Novo Nordisk A/S will be represented in the sector Health Care on the first level, Pharmaceuticals & Biotechnology on the second level, Pharmaceuticals on the third level and, finally, once again, Pharmaceuticals on the fourth level.
Vestas Wind Systems A/S is represented in Industrials on the first level and Capital Goods on the second level, on the third level the company is represented in Electrical Equipment and Heavy Electrical Equipment on the fourth level.
The GICS model has been selected in co-operation with the other exchanges in the NOREX Alliance and it has already been adopted by the exchanges in Stockholm and Oslo.
In connection with the introduction of GICS a number of new indices will be launched, including a new benchmark index - KBX. The All-Share Index and the other GICS indices at the Copenhagen Stock Exchange, the OM Stockholm Exchange and the Oslo Stock Exchange are calculated according to harmonised rules.
With these comparable indices, investors will have a better tool to use when comparing companies and industries across the various markets.
Indices on level 1 and level 2 will be calculated throughout the trading day and released to the professional market and at the close of the day, the closing values of the 59 industries of level 3 will be released.
At the Exchange's web site you may still tract the performance of the KFX and KVX indices currently over the day, while the index values of the sectors and industry groups will be updated 5 times a day.
The introduction of the GICS model on the Danish equity market has been postponed for a few months compared with the launch date announced in our press release of 27 November 2000.
