Bahrain Bourse Holds Virtual Awareness Workshops on the Adoption of Global Industrial Classification Standard (GICS) to Market Participants

Monday, June 7, 2021
Bahrain Bourse held a series of virtual awareness workshops on its plans to adopt the Global Industry Classification Standard (GICS) as part of its plans to communicate key information related to GICS and the new industry re-classification of listed companies to market participants and the public through conducting workshops and media awareness. The workshops held were targeted towards listed companies, brokers and members, and the public, where more than 80 participants attended the workshops.

The workshops began with a brief explanation of the new classification methodology and highlighted the benefits of adopting it. The workshops also discussed the re-classification of listed companies following the adoption of GICS, and concluded with addressing queries from the attendees.

Director of Trading Operations at Bahrain Bourse, Mr. Abdulla Janahi said: “The adoption of the Global Industrial Classification Standard (GICS) will assist in meeting the needs of the global investment community for a classification system that reflects a company’s financial performance to that of the industry it represents. The industrial re-classification will ensure alignment of a company’s business activities and sources of revenues to its respective sector classification.”

“The GICS is a global hierarchical industry classification standard developed by index providers MSCI and S&P Dow Jones which covers 11 sectors representing the first level of the standards. After the adoption of GICS on 11th of July 2021, Bahrain Bourse’s sectors will be reclassified into 7 of the 11 of the globally-defined Level 1 (Sectors). Listed companies on Bahrain Bourse will be reclassified into the seven sectors (sectors) based on their principal business activity. The seven sectors include materials, industrials, consumer discretionary, consumer staples, financials, communication services, and real estate.” Mr. Janahi clarified.