The September quarterly rebalance of the S&P/ASX Indices was announced today, with few changes at the ASX100 level however significant movement at the ASX300 level.
The ASX100 will receive two new players, Qube Holdings Limited (ASX:QUB) and Spotless Group Holdings Limited (ASX:SPO). The companies replaced Metcash Limited (ASX:MTS) and Transpacific Industries Group (ASX:TPI).
The ASX200 will receive six new additions and consequently six removals. A notable addition will software company MYOB Group Limited (ASX:MYO). The company listed in May of this year released strong half year results in August, reporting net profit growth of 14 per cent.
Kathmandu Holdings Limited (ASX:KMD) will be removed from the ASX200. The company has faced difficult market conditions in FY15 and as a result has experienced disappointing financial results. Investors breathed a sigh of relief after KMD received a takeover bid from Briscoe Group earlier this year, however an agreement regarding price has not been reached.
The ASX300 will experience fourteen changes to its index in September. A notable addition will be home furniture retailer, Adairs Limited (ASX:ADH). The company listed in mid-June this year and has experienced 10 per cent growth in its share price despite recent market conditions. Half year results were reported in August with the company outperforming prospectus forecasts.
Removals from the ASX300 were predominantly resource based companies. One of note is Atlas Iron Limited (ASX:AGO). The company has been under pressure due to declining iron ore prices and voluntarily suspended trading in April this year for approximately three months, in order to complete a capital raising after suspending certain mining operations.
Inclusion in an indice can be hugely beneficial for a company as institutional investors become more interested. Conversely the removal can have the opposite effect. Changes will take effect as of 18 September 2015.
Author: Ben Visser
Sep 04, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.