TELECOM SECTOR TURNSTILE

SUPERCHARGED Telecom sector is more than likely, could become investor favourite.

An overhauled telecommunications sector featuring most of the so-called FANG stocks could debut as Wall Street's hottest bet when it kicks off in September, boosted by a rising wave of media and television acquisitions.

Long viewed as stodgy stocks for dividend-oriented investors, the telecom services sector will be renamed communications services and supercharged with the addition of :

Facebook, Netflix and Google owner Alphabet - three of the four FANGS, along with Amazon, - as well as other companies that have driven the stock market to record high in recent years. 

The changes are part of  the largest-ever shaking of the stock market's broad business categories.

In total, 14 S&P companies, including Netflix, will shift from the consumer discretionary sector into communications, joining AT&T, Verizon Communications CenturyLink in the biggest shakeup of  Global Industry Classification Standard, or  GICS, since it was created in 1999.

Five S&P 500 companies will switch from technology to communication.

The new sector will also include Walt Disney, Comcast and others entertainment and media companies scrambling to consolidate and fend off competition from newcomers Netflix and Alphabet, which produce content and sell it directly to consumers.

The floodgate for such deals were sprung open this months by a legal ruling giving AT&T the go-ahead to but Time Warner for $85 billion.

''Among all of the sector groups, this is going to be the most dynamic, predicted Jack Ablin, chief investment officer at  Cresset Wealth Advisors in Chicago.

''You will see a lot of deal activity in the coming months, and it will be an awakening for anyone who is not on top of it.''

Amazon.com, the fourth FANG stock, will stay in consumer discretionary and represent nearly a third of that sector.

The Honor and Serving of the Latest Global Research on Telecommunication companies and the  Market continues to Part 2.