One of the changes in the S&P Dow Jones Indices rebalancing is that Afterpay Touch Group Ltd (ASX: APT) is entering the ASX 100.
S&P Dow Jones describes itself as the largest global resource for index based concepts, data and home to key market indicators like the S&P 500 and the Dow Jones Industrial Average. More assets are invested in products based on its indices than any other provider. It now has over 1 million indices across a variety of asset classes.
S&P / ASX 20 Rebalance Changes
The strong performance of the real estate investment trust (REIT) sector has seen Goodman Group (ASX: GMG) grow significantly in valuation, which will lead to its promotion into the ASX 20.
But for a promotion to happen there needs to be a relegation. Coles Group Limited (ASX: COL) is the one being kicked out. I’m sure management are hoping that the proposed job cuts will be one step towards taking its place back.
S&P / ASX 100 Rebalance Changes
Going out of the ASX 100 is Janus Henderson Group Plc (ASX: JHG) as it struggles with passive index investing and Brexit. Adelaide Brighton Ltd. (ASX: ABC) will also be exiting on Australian construction worries.
S&P / ASX 200 Rebalance Changes
Healthcare business Clinuvel Pharmaceuticals Limited (ASX: CUV) and telecommunications business Service Stream Limited (ASX: SSM) are entering the ASX 200. They are replacing Seven West Media Ltd (ASX: SWM) and Syrah Resources Ltd (ASX: SYR).
I think the ASX 200 changes are the most interesting because it causes ASX 200 index funds to buy the businesses entering the index and sell the ones being removed. But, I wouldn’t necessarily buy any shares just because they are entering the index.
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.