Stoxx Ltd, the company that operates the Dow Jones Euro Stoxx 50 index, will publish the new list of companies that will make up its blue-chip index later today. No Irish companies are expected to feature.
Last June, Stoxx signalled that the composition of the index was being restructured. Companies would no longer be included on a country-by-country basis but would be chosen on the basis of their market capitalisation instead.
So the new index will be dominated by companies that are leaders in their sector in Europe rather than merely the biggest player in their domestic market.
The new selection procedure means that AIB, the only Irish company currently on the list, is likely to lose its place.
The new index is expected to be closely based on a list of the top stocks in the euro zone in terms of market capitalisation which was published by Stoxx at the end of July.
AIB was ranked 61st on that list, outside the top 50, while CRH - in 73rd position - was the only other Irish company to feature on the list of 80.
Based on the list at the end of July, a number of large European companies that were previously excluded from the index are set to gain a spot.
Among the companies likely to benefit from the change in the selection procedure are German chemical firms BASF and Hoechst, Volkswagen and Dresdner Bank, Spain's Banco Santander and France's Sanofi.
Not surprisingly, the new list is likely to be dominated by French and German companies with some Dutch, Italian, and Spanish firms as well. Like Ireland, no companies from Portugal, Austria or Luxembourg are expected to feature while Finland will probably be represented by just Nokia and Belgium by financial services group Fortis.
Inclusion on the index is seen as desirable as a growing number of fund managers - particularly those with consensus or tracker funds - use the index as the basis for their asset allocation.
The change in the stock selection method aims to improve transparency, providing greater predicability and a more regional focus, according to Stoxx, a joint venture between Dow Jones and the Swiss, German and French stock exchanges.
The new list of companies will be published late this evening and the changes to the index will take effect from September 20th, it said.
