MasterCard conqueres new peaks

One of the largest credit card networks in the world MasterCard will join the Standard & Poor's 500 .SPX replacing Ace Ltd. Besides, MasterCard is to take the place normally occupied by General Motors Corp in the S&P 100 index which was removed from the index by S&P.

The circumstance that drove S&P to drop Ace from its flagship index was the reincorporation of Ace in Switzerland which makes the company ineligible for including in S&P U.S. indexes.

Since the Purchase, New York-based Company became public in 2006 MasterCard network’s shares rose over six times while the shares of GM proved the drop unprecedented for 58 years.

Companies joining the S&P 500 experience shares increase because a large number of portfolio managers try to be in line with the index which requires to buy shares of companies that enter it.

After the S&P announcement MasterCard shares rose $9.80, or 3.9 percent, to $263 in after-hours trading while Ace shares fell $3.31, or 6.3 percent, to $49.55.

As per S&P's statements  the index changes are to come into force after the close of trading on July 17.