Quarterly rebalance: Appen kicked out of ASX 100, Uniti added to ASX 200

A number of shares will be on watch on Tuesday after S&P Dow Jones Indices announced its quarterly changes to …

A share market investment manager monitors share price movements on his mobile phone and laptop

Image source: Getty Images

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 will be on watch on Tuesday after S&P Dow Jones Indices announced its quarterly changes to the S&P/ASX Indices. These are effective prior to the open of trading on 21 June and follow its June quarterly review.

Here is a summary of some of the key changes being made:

ASX 50

Gold mining giant Northern Star Resources Limited (ASX: NST) will join the exclusive ASX 50 index next week. It will be replacing commercial explosives and blasting systems provider Orica Limited (ASX: ORI).

ASX 100

Retail giant Harvey Norman Holdings Limited (ASX: HVN) and fellow retailer Metcash Limited (ASX: MTS) have been added to the ASX 100 index at the next quarterly rebalance. They will be replacing struggling artificial intelligence data services company Appen Ltd (ASX: APX) and telco TPG Telecom Ltd (ASX: TPG).

ASX 200

Joining the benchmark ASX 200 index are gold explorer Chalice Mining Ltd (ASX: CHN), lithium giant Orocobre Limited (ASX: ORE), and growing telco Uniti Group Ltd (ASX: UWL). They will take the place of shipbuilder Austal Limited (ASX: ASB), mining services company Perenti Global Limited (ASX: PRN), and embattled gold miner Resolute Mining Limited (ASX: RSG) next week.

In respect to Uniti, it notes that it joins the ASX 200 index after just over two years of being a listed company.

Uniti's Chairman, Graeme Barclay, commented: "Uniti's inclusion in the ASX 200 Index is validation of the successful implementation of our strategy, to become the preeminent challenger in the FTTP market, with a clear focus on profitably deploying, managing and maximising the utilisation of our own fast-growing national data infrastructure network within our Wholesale and Infrastructure business unit, well supported by growth and profitability in both our Consumer & Business and CPaaS business units."

What now?

Given how some fund managers have strict investment mandates that mean they can only buy shares from certain indices, this news is likely to be a boost to the shares being added to indices and the opposite for those removed. In addition to this, index-tracking ETFs will need to buy and sell these shares in order to accurately reflect the indices.

This could make it an eventful day for some of the shares listed above.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd and Austal Limited. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Guess which ASX 200 share Goldman Sachs says is a buy

The broker doesn't think Trump will spoil the party for this stock.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
BNPL shares

Is this why the Zip share price keeps breaking records?

Zip shareholders have been enjoying a record breaking year. Is this why?

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Broker Notes

Bell Potter names the best ASX 200 stocks to buy in November

These quality stocks are top picks in November according to the broker.

Read more »

A female stockbroker reviews share price performance in her office with the city shown in the background through her windows
Share Market News

5 things to watch on the ASX 200 on Friday

Another good session is expected for Aussie investors today. Here's what is happening.

Read more »

A middle-aged man working from home looks at his mobile phone with a laptop open on the table in front of him.
Share Market News

Here's why more Australians intend to work during retirement

A new survey reveals insights into the retirement intentions of older Australian workers.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Are we soon to see a skyrocketing Aussie stock market?

Will the Aussie stock market follow the lead of American stock markets following the US election?

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile, but positive, day for ASX shares this Thursday.

Read more »

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
Record Highs

Xero and 2 other ASX tech shares cracking all-time highs on Thursday

The price peaks follow a significant lift in the NASDAQ overnight following Republican Donald Trump's US election victory.

Read more »