Philip Morris International Inc (PM)

[EZ2]

S&P 500 adds Philip Morris, HCP; Circuit City out

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Reuters U.S. Company News
5:39 p.m. 03/20/2008


NEW YORK, March 20 (Reuters) - Standard & Poor's said on Thursday it would add cigarette maker Philip Morris International Inc and health care real estate investment trust HCP Inc (HCP) to its flagship S&P 500 stock index (SPX) .

Philip Morris is being split off by Altria Group Inc (MO), and will replace electronics retailer Circuit City Stores Inc (CC) in the index after the close of trading on March 28. HCP will replace Commerce Bancorp Inc (CBH), which is being acquired by Canada's Toronto-Dominion Bank, after the close of trading on March 31.

Shares of companies joining the S&P 500 often rise because many large investors try to track the index, and as a result are required to buy shares of companies that join it. Conversely, shares of companies that fall out of the index can decline because the same investors must sell them.

HCP shares rose 69 cents to $32.43 in after-hours electronic trading, after rising 91 cents during regular trading. Circuit City shares fell 20 cents to $4.11 after hours, after rising 31 cents during regular trading. (Reporting by Jonathan Stempel)