Last Friday, 3 S&P/ASX 200 Index (ASX: XJO) blue-chip shares were included in the MCSI Australia Index. These were Afterpay Ltd (ASX: APT), Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST). Notably, 2 of the 3 inclusions came from the gold mining sector.
Once a share is included in an MCSI index it is automatically added to the portfolios of ETFs tracking that index. One example is the Vanguard MSCI Australian Large Companies Index ETF (ASX: VLF). With billions of dollars in play, any small change can cause large scale ripples.
Last week, all 3 companies saw their share prices rise considerably from a mid-week low point. In my opinion, they are positioned to enjoy a continued rise in share prices this week.
Blue chip winners
Afterpay is the most prominent and reported on ASX 200 share today. It is nothing short of a phenomenon. Last week, the company's share price rose 4.98% from its low on Wednesday to Friday's close. The current Afterpay valuation is a point of contention among investors. Nonetheless, its position as a growth share is clear.
Northern Star has been the best growth share on the ASX 200 over the past 10 years. An initial investment on 1 January 2010 would have grown an amazing 490 times so far. From Wednesday's low to Friday's close last week, the Northern Star share price rose by 10.83%.
The company is known for increasing the gold reserves and production output of mines it acquires. It recently purchased 5% of the Kalgoorlie super pit mine site. This included the operating rights. In my opinion, it set to continue its share price rise.
Evolution Mining is another Australian blue chip gold miner that is known for its productivity. Its most recent acquisition, Red Lake, is likely to see an improvement in productivity. Evolution shares rose 10.37% from their low point on Wednesday last week to Friday's close.
Make room
In addition, 8 companies were dropped into the MSCI World Small Cap Index. These were Alumina Limited (ASX: AWC), Bendigo and Adelaide Bank Ltd (ASX: BEN), Boral Limited (ASX: BLD), Challenger Ltd (ASX: CGF), Flight Centre Travel Group Ltd (ASX: FLT), Harvey Norman Holdings Limited (ASX: HVN), Incitec Pivot Ltd (ASX: IPL), and Worley Ltd (ASX: WOR).
