Every quarter the S&P Dow Jones Indices group adjust or rebalance their indices.
For example the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) index ranks the top 200 companies by size. The companies included in the top 200 must also be highly liquid and tradable.
In my opinion, watching which companies are added to the S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) is a good pastime. That’s because it can include the smaller, emerging, companies listed on the ASX that you may not always notice.
Also, many of the largest fund managers (think superannuation funds, multinational asset managers, etc.) are prohibited from investing in companies smaller than those included in the S&P/ASX 300 for obvious reasons.
Therefore, when companies are added to the index, they can be bought by more money managers and index funds – making a stronger market for the company’s shares.
10 companies added to the S&P/ASX 300
Here are 10 companies added to the S&P/ASX 300:
|1PG||1-Page Ltd (ASX: 1PG)||$191 million||Software|
|3PL||3P Learning Ltd (ASX: 3PL)||$186 million||Consumer Services|
|A2M||a2 Milk Company Ltd (Australia) (ASX: A2M)||NZD1.3 billion||Food, Beverage & Tobacco|
|ACX||Aconex Ltd (ASX: ACX)||$844 million||Software|
|AJX||Alexium International Group Ltd (ASX: AJX)||$194 million||Materials|
|AMA||AMA Group Ltd (ASX: AMA)||$393 million||Retail|
|AYS||Amaysim Australia Ltd (ASX: AYS)||$315 million||Telecommunication|
|BLA||Blue Sky Alternative Investments Ltd (ASX: BLA)||$342 million||Financials|
|BWX||BWX Ltd (ASX: BWX)||$367 million||Household & personal Products|
|CKF||Collins Foods Ltd (ASX: CKF)||$419 million||Consumer Services|
Data sourced from Google Finance.
If you were looking for 10 potential growth shares to add to your research list, these companies could be what you need. Perhaps unsurprisingly, many of the these companies are technology-related or have embraced technology as a big part of their business. Perhaps it’s a sign of things to come?