NEW YORK Alcoa
Inc. has been dropped from the Dow Jones industrial index after
54 years and has been replaced by Nike Inc., S&P Dow Jones
Indices announced Sept. 10.
AMM that the news had been expected for months as
Alcoa makes up a small part of the market and focuses on
really matter and has no impactmore of a changing of the
guard and the loss of prestige from being out of the index,"
Edward Meir, analyst at New York-based INTL FCStone Inc., said
in an e-mail. "Maybe some selling in some index portfolios will
occur as a result, otherwise its a non-event."
aluminum manufacturer, as well as Charlotte, N.C.-based Bank of
America Corp. and Palo Alto, Calif.-based Hewlett-Packard Co.,
were dropped because of low stock prices and to add more
diversity to the industry representation in the index, Dow
Jones Indices said. Alcoa shares closed at $8.06 apiece Sept.
10, down 13.4 percent from a year-to-date high of $9.31 and 83
percent below an all-time high of $47.35 in July 2007.
"Alcoa has suffered as
a stock because the aluminum market has been in a perceived
surplus position for years," Standard & Poors Corp.
equity analyst Philip Kaukonen said. "Stock numbers at (London
Metal Exchange-approved warehouses) have been persistent."
Nearly 5.4 million tonnes of aluminum are stocked in
from the index will not affect its business strategy and it
plans to focus on new growth opportunities in industries such
as aerospace and automotive, the company said.