Standard & Poor's said on Friday it will add eight stocks and remove six from the Toronto Stock Exchange's key S&P/TSX composite index as part of its quarterly review of index eligibility. S&P, which has manages the Toronto stock index, said the changes will take effect after the close of trading on Friday, June 17.
Included in the additions are ACE Aviation Holdings, parent company of dominant national carrier Air Canada, which recently emerged from bankruptcy protection. Also to be added will be grain handler Saskatchewan Wheat Pool, which completed a recapitalization earlier this year.
Among stocks to be cut are frozen dessert maker Coolbrands International Inc, whose shares tumbled in April after the company reported disappointing results.
The adjustments will leave the former TSE 300 index with just over 220 stocks.
The composite has been whittled down since S&P set strict inclusion criteria in 2002, casting aside stocks with small trading volumes and low market capitalisation to try to make it more attractive to foreign investors.
Companies removed will still trade on the exchange, but will fall off the radar screens of index traders. However, addition or removal usually does not have a noticeable short-term impact on the stock.
The Toronto Stock Exchange is owned by TSX Group Inc.
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