NEW YORK: Apple Inc, the largest US company by market value, will join the storied Dow Jones industrial average, replacing AT&T Inc, in a change that reflects the dominant position of iPhone maker in the US economy and society.
The decision to nudge aside AT&T, which has been part of the Dow for the better part of a century, is a recognition of the way in which communications and technology have evolved over the last several decades.
“This is a sign of the times, and it might get everyone to look at the Dow more than they have been,” said Richard Sichel, who oversees $2 billion as chief investment officer at Philadelphia Trust Co.
“It would be difficult to pick any 30 companies that would cover the entire economy, especially compared with the S&P 500, but it does give the Dow more credibility.”
With a market capitalization of $736 billion, Apple is the largest publicly traded company in the index. The action, by S&P Dow Jones Indices, had been widely expected since Apple split its shares seven-for-one in June 2014.
After the split, many investors felt it was only a matter of time before the iPad maker was added to the 30-stock average, since it had been excluded because its stock price was too high for the price-weighted index.
AT&T has a market value of $176.5 billion. Its deletion from the index leaves Verizon as the sole telecommunications company in the average.
The company has had two stints in the Dow. It was added in 1916 and removed in 2004. After SBC Communications renamed itself AT&T following a 2005 merger, it was reinstated.
Despite Apple’s size, it would as of Thursday’s close only have a 4.66 percent weighting in the Dow because of its price, the index company said in a statement. Apple will join the average on March 18.
In early trading, shares of Apple were higher, gaining 1.4 percent to $128.15, while AT&T’s shares fell 1.4 percent to $33.53.
Had Apple had replaced any one of the 30 Dow components except Visa after its June 2014 split, a Reuters analysis recently showed, the index would have been higher. Visa is the only Dow component that would have helped the Dow more during that time, in part because of its high stock price.
Kevin Landis, chief investment officer of Firsthand Capital Management, a Silicon Valley-based technology-investing specialist with $300 million in assets under management, said he hopes that this is not a sign that Apple is past its prime.
“The Dow Jones is such a backwards-looking list, I cringed when Intel and Microsoft were added,” Landis said.
“I’m cringing today. Let’s hope Apple can defy the forces of history.”
Intel and Microsoft joined the average in November 1999, and their performance was weak for years following.
iPhone maker to replace AT&T in Dow industrials
iPhone maker to replace AT&T in Dow industrials
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
