The FTSE's revamped industry classification system is now being used by the FT/S&P's Actuaries World...
The FTSE's revamped industry classification system is now being used by the FT/S&P's Actuaries World Indices as part of the creation of a worldwide classification system.
This completes the process of unification that was started when FTSE's European Indices moved to the new system at the start of the year and was continued when the UK indices joined at the beginning of April.
Among the extensive changes are the creation of an information technology economic group and the establishment of several cyclical and non-cyclical groups.
The information technology group is divided into hardware which accounts for 9.5% of the world index and software & computer services, which takes up 4.5%. Hardware is divided into semiconductors, computer hardware and telecoms equipment, which is the biggest subsector at 4% and which includes companies such as Cisco, Nokia and Nortel Networks.
Software & computer services joins in one group companies, such as Microsoft, IBM, Intel, Nokia and Yahoo!, which previously were scattered across a range of sectors. It includes the internet subsector which specifically covers companies that provide access to, and services based on, that medium.
Telecommunications companies have been moved from utilities to join food retail in the non-cyclical services economic group which makes up 10% of the world index. Cyclical services takes up 11.5%, with general retailers, media & photography, leisure, and entertainment & hotels as the top sectors.
Cyclical consumer goods, which takes up 4% of the world index, is divided into automobiles and household goods while the larger non-cyclical consumer goods, which occupies 15% of the world index, is dominated by pharmaceuticals, health and personal care & household products.
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