Standard & Poor’s is revising the Global Industry Classification Standard (GICS) for two of the S&P/TSX capped sector indices.

Following the September 2005 quarterly rebalancing, the S&P/TSX capped energy index will be defined as the GICS energy sector (code 10) excluding the GICS codes for coal and consumable fuels (code 10102050), and oil and gas storage and transportation (code 10102040).

The S&P/TSX capped financials index will be defined as the GICS financials sector (code 40) excluding the GICS code for real estate (code 4040). All revisions to the GICS definitions will be effective after the close of business on Friday, September 16.

“Our goal is to focus the S&P/TSX capped energy index more closely on companies with exposure to oil and gas prices, versus the broader GICS energy sector, which includes other energy businesses like coal and uranium. For the S&P/TSX capped financials index, we will exclude real estate, which could become a much larger factor in financials once REITs become eligible for the S&P/TSX composite index later this year,” said Steve Rive, vp of Standard & Poor’s Canadian Index Services, in a release.

“In both cases we are acting in response to market feedback in order to ensure that the S&PTSX indices remain current and in line with customer needs,” added Rive.

Standard & Poor’s says it will continue to calculate the uncapped S&P/TSX energy and S&P/TSX financials indices, based on the Energy Sector (code 10) and financials sector (code 40), respectively.

S&P/TSX capped sector index constituents are selected from a stock pool of S&P/TSX composite stocks and included using S&P’s guidelines for evaluating company capitalization, liquidity, and fundamentals. The relative weight of any single index constituent is capped at 25%.