The S&P Dow Jones Indices has today announced the results of its quarterly rebalance for the Australian sharemarket.
Following the review, a number of companies earned a promotion into the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) and the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) which should be of interest to investors.
This is because companies within the ASX 200 and ASX 300 attract the most attention from fund managers which are often precluded from investing outside of these groups.
It also means that companies that are added to the list will generally receive greater coverage from analysts and fund managers, while those removed will tend to get less attention.
In no particular order, here are 10 of the companies that earned promotions this quarter:
- Altium Limited (ASX: ALU) – a provider of software for designing printed circuit boards, or PCBs.
- Bellamy's Australia Ltd (ASX: BAL) – a Tasmania-based group that produces a highly popular baby formula product.
- Myob Group Ltd (ASX: MYO) – a recently-listed accounting software provider.
- Burson Group Ltd (ASX: BAP) – Australia's leading automotive aftermarket parts business.
- Brickworks Limited (ASX: BKW) – engaged in the manufacturing and distribution of clay and concrete products (benefiting from the housing boom).
- Adairs Ltd (ASX: ADH) – a retailer of home furnishings, also benefiting from the housing boom.
- St Barbara Ltd (ASX: SBM) – a gold producer and explorer.
- Mantra Group Ltd (ASX: MTR) – an Australian-based hotel and resort operator.
- Gateway Lifestyle Group (ASX: GTY) – a developer and manager of residential parks and communities for the over 50s.
- HFA Holdings Limited (ASX: HFA) – an Australian holding company.
Of the companies mentioned above, my favourite at today's price is Burson Group. Given that consumers tend to hold onto their older vehicles for longer when faced with economic uncertainty, demand for the company's products tends to remain strong during tougher periods which creates a somewhat defensive revenue stream for the business.
The shares are currently trading for $3.54, down from a 52-week high of $3.79.
