Standard & Poor's makes changes to small-cap index

AP News
Posted: Nov 09, 2009 6:29 PM

Standard & Poor's said Monday that UCBH Holdings Inc. will be deleted from the S&P SmallCap 600 index after trading ends Tuesday and replaced by Lumber Liquidators Inc.

UCBH's main subsidiary, United Commercial Bank, based in San Francisco, was closed Friday by California regulators and placed under receivership of the Federal Deposit Insurance Corporation. The deposits were assumed by East West Bank of Pasadena, Calif.

The bank mostly serves ethnic Chinese communities in the United States and U.S. companies doing business in China.

S&P said Lumber Liquidators, a hardwood flooring retailer, would be added to the index after trading closed on Nov. 16. The index will trade with 599 stocks in the interim.

Shares of Lumber Liquidators rose 3 cents to close at $24.98 in regular trading Monday, then gained $1.17, or 4.7 percent, to $26.15 in extended trading. Stocks often rise after they are added to major indices because they are bought up by managers of investment funds that track those benchmarks.