Bombardier to be dropped from S&P/TSX composite index, shares down
The Canadian PressIndustry
TORONTO – Bombardier Inc. shares fell nearly 10 per cent in midday trading 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 Friday after markets closed that Bombardier and 13 other companies would be removed from the index on June 22. The firms also included cannabis company Hexo Corp. and mall 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.
The shares were down five cents at 47 cents on the Toronto Stock Exchange on Monday.
Bombardier says the removal from the index “does not change anything” in terms of its liquidity and status as an actively traded stock on the TSX.
“Bombardier is and remains one of the country’s largest industrial players with more than 15,000 employees in Canada,” the company said in an email.