S&P CHANGE MIGHT HIT WAL-MART STOCK

DAWN S. KISSI

BENTONVILLE, Ark. -- Shares of Wal-Mart Stores here may be subject to significant volatility as fund managers adjust their portfolios after ratings firm Standard & Poor's shifts the weighting of the S&P 500 Index, said Deborah Weinswig, retail analyst with Citigroup Smith Barney, in a research report.

The changes in the S&P 500 involve a "full-float" adjustment, where shares available only for open-market trading will be counted in the index. Weinswig predicted Wal-Mart will be the hardest hit of all the S&P 500 companies because its weighting in the index will decrease the most.

Following the change in weighting of the index, Weinswig expects investors to turn over 159 million Wal-Mart shares worth $8.4 billion.

Wal-Mart's board of directors authorized a $10 billion stock buyback program last week, which replaces the company's prior $7 billion repurchase program.