Bombardier to be dropped from S&P/TSX composite index, shares down - InfoNews

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Bombardier to be dropped from S&P/TSX composite index, shares down

A plane comes in for a landing at a Bombardier plant in Montreal on May 14, 2015. Bombardier Inc. shares fell nearly 10 per cent in midday trading Monday after being dropped from the S&P/TSX Composite Index, adding to the plane-and-train maker's list of woes. S&P Dow Jones Indices said Friday after markets closed that Bombardier and 13 other companies would be removed from the index on June 22. The firms include cannabis company Hexo Corp. and mall fast-food company MTY Food Group Inc., both based in Quebec. THE CANADIAN PRESS/Ryan Remiorz
June 15, 2020 - 1:59 PM

TORONTO - Bombardier Inc. shares tumbled nearly 12 per cent Monday after news that it will be dropped from the S&P/TSX composite index, adding to the plane-and-train maker's list of woes.

S&P Dow Jones Indices said after the end of trading on Friday that Bombardier and 13 other companies would be removed from the index on June 22. The delisted firms also included cannabis company Hexo Corp. and fast-food company MTY Food Group Inc., both based in Quebec.

A range of criteria determine a stock's eligibility for the composite index, including market capitalization and liquidity.

Bombardier shares have hovered near 25-year lows for the past three months, falling 76 per cent from a January high of $1.96.

On Monday the shares fell six cents to close at 46 cents on the Toronto Stock Exchange.

Bombardier said the Montreal-based company remains one of the country's largest industrial players with more than 15,000 employees in Canada.

"Bombardier continues to be listed and traded on the (TSX) and continues to be very liquid as one of the most active stocks. The exclusion from the index does not change anything from that perspective," the company said in an email.

This report by The Canadian Press was first published June 15, 2020.

Companies in this story: (TSX:BBD.B, TSX:HEXO, TSX:MTY)

News from © The Canadian Press, 2020
The Canadian Press

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