Today is quarterly rebalance day for the Australian share market.
This is the day that additions and removals from major indices to reflect changes in market capitalisations and liquidity are made effective.
Earlier this month S&P Dow Jones Indices announced a sizeable eight additions and eight removals from the benchmark ASX 200 index.
For the companies entering the index, it often gives their shares a boost. That's because index funds have to buy them to reflect the change and fund managers that are only allowed to buy ASX 200 shares now have the option to invest.
Conversely, the shares that are kicked out of the ASX 200 index can come under pressure from selling from index funds and fund managers dumping shares they are no longer able to hold due to strict investment mandates.
And while most of the buying and selling is likely to be done in the two weeks between the announcement and the rebalance becoming effective, it is always interesting to see how these shares perform on rebalance day.
Image source: Getty Images
How are the ASX 200 evictees performing?
Let's take a look at how the eight ASX shares that have been kicked out of the ASX 200 today are performing. Here's a summary:
The AVZ Minerals Ltd (ASX: AVZ) share price has been suspended for over four months and thus has not been impacted (yet) by this rebalance.
The City Chic Collective Ltd (ASX: CCX) share price is down 4% to $1.62 on Monday. This plus sized fashion retailer's shares are now trading close to a 52-week low.
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has dropped 5% to $20.32 today.
The EML Payments Ltd (ASX: EML) share price has tumbled 4% to 90 cents. This struggling payments company's shares are now down over 70% in 2022.
The Janus Henderson Group (ASX: JHG) share price is down 0.5% today.
The Life360 Inc (ASX: 360) share price is defying the trend and storming 6% higher to $5.64 this afternoon.
The Pointsbet Holdings Ltd (ASX: PBH) share price is also managing to push higher despite its ASX 200 exit. The sports betting company's shares are up 2% to $2.14.
The Zip Co Ltd (ASX: ZIP) share price is down 2% to 80.5 cents. This buy now pay later provider's shares are now down 81% in 2022.
