This morning S&P Dow Jones Indices announced its September 2018 quarterly rebalance of the S&P/ASX indices.
The changes will be effective at the open of trading on September 24 and will see two familiar faces dumped from the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
The two shares that will be removed are:
Genworth Mortgage Insurance Australia (ASX: GMA)
This leading provider of lenders mortgage insurance in Australia will be removed from the benchmark index later this month. Genworth Mortgage Insurance has been a big disappointment this year and recently posted a 55.7% decline in half year underlying net profit after tax.
Greencross Limited (ASX: GXL)
This integrated pet care company has been dealt another blow with its removal from the S&P 200. Last month Greencross posted a full year statutory net profit after tax of $20.7 million, down a sizeable 51% on the prior year. This poor form means its shares are down 37% year to date and could come under further pressure after this latest news.
They will be replaced with the following two shares:
Bingo Industries Ltd (ASX: BIN)
Waste management company Bingo Industries will be added to the benchmark index later this month. The strong performance of the company since its IPO appears to have caught the eye of S&P Dow Jones Indices analysts. And it isn't hard to see why if you ask me. Last month Bingo reported a 44.8% increase in pro forma NPATA and announced the $577.5 million acquisition of Dial A Dump. Despite its strong share price rally I would still class it as a great buy and hold option.
Elders Ltd (ASX: ELD)
Considering its reasonably sharp share price decline this year I'm a little surprised with this choice. However, I have been very impressed with the way the agribusiness company has turned around its fortunes over the last few years.
