The GICS model classifies the companies according to the activity generating the greater part of the company's earnings. The model has four levels and thus it allows a very precise classification, where the fourth level has the highest degree of specialisation. First, a company is placed in the sub-industry closest to its principal activity, i.e. at the most precise level to begin with. Then the other classifications follow automatically.
We have companies represented in nine of the ten sectors that comprise the overall level of the GICS model. At level 2 - the industry group level - we have Danish companies represented in 21 of 23 groups. At level 3 - the industry level - 43 industries out of 59 are represented on the Exchange, while level 4 - the sub-industry level - has companies in 58 out of 123 sub-industry groups, i.e. in less than half of this subtle classification.
Commenting on the new industry classification, President and CEO Hans-Ole Jochumsen said: "We have gotten yet another tool to lift the Danish equity market to a level which makes it easier for the investors - especially the foreign investors - to obtain an insight into the Danish company structure and development of industries."
