ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300

A number of shares could be on the move today after the S&P Dow Jones Indices announced its quarterly rebalance of the ASX/S&P Indices.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published March 15, 2021 9:20 am AEDT

After Friday's market close, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices.

The updated list could potentially move the prices of some shares as fund managers seek to readjust their portfolios. In addition, exchange-traded funds (EFT's) will also see changes across the broader indices.

Here is a brief summary of the most well-known shares on the ASX that were added or removed on the S&P/ASX Indices.

Australia's top 100 companies remained stable with no changes to their retrospective benchmark this quarter. However, it was a different story for the remaining indices.

S&P/ASX 200 Index changes

The S&P/ASX 200 Index (ASX: XJO) added a few new companies, mostly within the mining sector, as a result of growing consumer confidence. This saw iron ore developer Champion Iron Ltd (ASX: CIA), along with nickel producer Nickel Mines Ltd (ASX: NIC) and lithium miner Pilbara Minerals Ltd (ASX: PLS) added into the benchmark.

In addition, electronic products company Codan Limited (ASX: CDA) and investment platform provider HUB24 Ltd (ASX: HUB) were also included.

They replaced Bravura Solutions Ltd (ASX: BVS), Smartgroup Corporation Ltd (ASX: SIQ), Service Stream Limited (ASX: SSM) and Tassal Group Limited (ASX: TGR).

S&P/ASX 300 Index changes

There was a number of swaps within the S&P/ASX 300 Index (ASX: XKO), particularly relating to some companies that have taken centre stage recently. The most notable businesses that joined the list were furniture retailer Adairs Ltd (ASX: ADH), artificial intelligence company Brainchip Holdings Ltd (ASX: BRN), and subscription-based meal kit provider Marley Spoon AG (ASX: MMM).

Leaving the ASX 300 index are ELMO Software Ltd (ASX: ELO), Freedom Foods Group Ltd (ASX: FNP), Kathmandu Holdings Ltd (ASX: KMD), Macmahon Holdings Limited (ASX: MAH), and Superloop Ltd (ASX: SLC) among others.

What does this mean?

While the changeover will take place on 22 March 2021, the news could boost or put pressure on the affected shares. Most fund managers are required to adhere to their strict guidelines, which allow them to buy shares only within a certain index. On the other hand, EFTs usually pick up and/or dump the appropriate shares to keep in line with the benchmark.

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