TIXT will be dropped from TSX 60 index S&P Dow Jones Indices announced late Friday that it is dropping two prominent technology companies from the S&P/TSX Composite Index, the broadest measure of the Canadian market.
The index provider will cut legal software company Dye & Durham Ltd. DND-T and Telus International (Cda) Inc. TIXT-T, a consulting spinoff of Telus Corp. T-T, as part of its quarterly changes.
It will also remove Endeavour Silver Corp. EDR-T and funeral-services provider Park Lawn Corp. PLC-T.
The changes will be effective at the open of markets on Dec. 18.
With the growth of index funds and other passive investing strategies, whether a stock is part of a major index can have a meaningful effect on share prices. Fund managers who track an index need to hold shares in the underlying companies. Canadian stocks added to the composite – which has about 220 to 250 members, depending on the quarter – can see price bumps before and after inclusion. Similarly, companies removed from the index lose a source of demand for their shares.