Medibank Private Ltd (ASX: MPL) has been elevated into the S&P/ASX 50 Index along with SEEK Limited (ASX: SEK) as part of the S&P Dow Jones Indices quarterly rebalance.
Medibank Private, the ex-government owned private health insurer, listed on the Australian Securities Exchange in November last year and has since become a $6.9 billion corporate giant. Meanwhile, online employment classifieds business SEEK is worth a whopping $5.9 billion, also enough to earn it a place in the top 50 at the expense of both Iluka Resources Limited (ASX: ILU) and Worleyparsons Limited (ASX: WOR).
The alterations made to the indices reflect the relative size and liquidity of Australia's publicly listed companies during each quarter. Although the change will not impact a company's prospects in the long term, it can cause some volatility in the near-term as fund managers readjust their portfolios.
While Medibank and SEEK were amongst the most notable companies to earn a promotion, Corporate Travel Management Ltd (ASX: CTD), Estia Health Ltd (ASX: EHE) and Regis Healthcare Ltd (ASX: REG) were also elevated into the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the expense of some of Australia's junior iron ore miners.
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