Quarterly rebalance: Afterpay added to ASX 100, Syrah Resources kicked out of ASX 200

Afterpay Touch Group Ltd (ASX:APT), Clinuvel Pharmaceuticals Limited (ASX:CUV), and Syrah Resources Ltd (ASX:SYR) shares will be on watch today after being caught up in the S&P Dow Jones Indices quarterly rebalance…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A number of shares could be on the move on Friday after S&P Dow Jones Indices announced its June 2019 quarterly rebalance of the S&P/ASX Indices.

Below is a summary of the changes that have been made, effective at the open of trading on June 24.

S&P/ASX 20 index changes.

The impressive run by the Goodman Group (ASX: GMG) share price in 2019 has led to the property group being included in the S&P/ASX 20 index at the expense of supermarket giant Coles Group Ltd (ASX: COL). The Goodman Group share price is up around 37% this year, taking its market capitalisation up to $26.5 billion.

S&P/ASX 100 index changes.

Australia's top 100 listed companies has a couple of new faces this quarter. Payments company Afterpay Touch Group Ltd (ASX: APT) and energy producer Beach Energy Ltd (ASX: BPT) have been added to the index. They have replaced building materials company Adelaide Brighton Ltd (ASX: ABC) and fund manager Janus Henderson PLC (ASX: JHG).

S&P/ASX 200 index changes.

The benchmark S&P/ASX 200 index has seen three changes this quarter. Ship builder Austal Limited (ASX: ASB), fast-growing pharmaceutical company Clinuvel Pharmaceuticals Limited (ASX: CUV), and network services provider Service Stream Limited (ASX: SSM) have all been added to the index. Whereas soon-to-be-acquired education services provider Navitas Limited (ASX: NVT), media company Seven West Media Ltd (ASX: SWM) and struggling graphite producer Syrah Resources Ltd (ASX: SYR) have been kicked out of the S&P/ASX 200 index.

What now?

When a company is added to an index it can lead to an increase in demand for its shares from exchange traded funds that are designed to track an index and from fund managers that may only be permitted to buy shares on certain indices.

Conversely, when shares are removed it can lead to selling pressure for the same reasons. Because of this, I wouldn't be surprised to see some of these shares push higher or sinking lower today.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »