Colombo Stock Exchange to drop older sector categories in favour of GICS

ECONOMYNEXT- Sri Lanka’s Colombo Stock Exchange said it will discontinue the localized sector classification and follow the Global Industrial Classification Standard (GICS) from January 20.

The GICS was designed to ensure standardized sector classifications, to make decision making easier for the global financial community.

The new classification will be use to replace the present sector classification use by the CSE to provide investor information.

“GICS aims to provide an accurate, complete and long-term view of the global investment universe from an industrial perspective,” a GICS report said.

CSE had adopted GICS in 2015 and has been running it simultaneously with the older classification.

GICS was developed by Morgan Stanley Capital International (MSCI), a provider of global indices and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company.

The GICS structure consists of 11 Sectors, 24 Industry groups, 69 Industries and 158 sub-industries.

The GICS eleven sectors are Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Communication Services, Utilities, Real Estate.
(Colombo/ Jan 17/2020)