A number of shares could be on the move on Friday after S&P Dow Jones Indices announced its December 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 December 23.
S&P/ASX 20 Index.
Gold miner Newcrest Mining Limited (ASX: NCM) will be joining the S&P/ASX 20 index later this month.
It will be replacing diversified miner South32 Ltd (ASX: S32) in the index which covers the largest 20 listed companies on the ASX.
S&P/ASX 200 Index.
There will be a couple of changes to the S&P/ASX 200 index at the next rebalance.
Leaving the index later this month will be lithium miner Galaxy Resources Limited (ASX: GXY) and remote communications provider Speedcast International Ltd (ASX: SDA).
Both companies' shares are down heavily this year. Galaxy has been impacted by a sustained decline in lithium prices due to softening demand and growing supply.
Whereas Speedcast has come under pressure due to its disastrous performance in FY 2019 and its massive debt. At the last count Speedcast had a net debt of $625 million. This is 3.5x larger than its ~$175 million market capitalisation.
Galaxy and Speedcast will be replaced in the index by auto retailer AP Eagers Ltd (ASX: APE) and retirement living-focused real estate company Ingenia Communities Group (ASX: INA).
Earlier this year AP Eagers successfully completed its merger with Automotive Holdings Group, creating a $2.5 billion auto retailing giant.
The Ingenia Communities share price has been a strong performer this year. It is up 48% since the start of the year thanks to the outperformance of its guidance in FY 2019 and a major acquisition.
Ingenia delivered record EBIT of $61.5 million in FY 2019, up 26% on the prior corresponding period.
It then raised $131.1 million to acquire three established communities, two parcels of land adjoining existing communities, and a large greenfield site north of Sydney. This added 540 income producing sites and 640 development sites to its portfolio.
