Just 3 months after listing, Nuix Ltd (ASX: NXL) will enter the S&P/ASX 200 Index (ASX: XJO).
After an initial public offering at $5.31 per share, the data analytics provider floated in early December and immediately became a market darling.
It rose as high as $11.86 in January. But it's since sunk to $5.51 after investors savaged its half-yearly result.
But now that Nuix will join the elite 200 from 22 March, all eyes will be on the share price again. This is because index funds that follow the ASX 200 will be forced to buy into the stock, pushing demand upwards.
The same goes for Hub24 Ltd (ASX: HUB), which was also announced as a new entrant to the ASX 200 this month.
The Hub24 share price has had an up-and-down year but still sits slightly down year-to-date. No doubt the fintech is looking forward to a potential boost from index funds.
S&P Dow Jones Indices on Friday also announced 4 other companies would make it into the ASX 200 this month:
- Codan Limited (ASX: CDA)
- Champion Iron Ltd (ASX: CIA)
- Nickel Mines Ltd (ASX: NIC)
- Pilbara Minerals Ltd (ASX: PLS)
The ASX companies kicked out from the 200
If 6 companies enter the 200, then 6 must come out.
Unfortunately, these were the businesses that couldn't grow quite enough to remain in the club:
- Bravura Solutions Ltd (ASX: BVS)
- GWA Group Ltd (ASX: GWA)
- Sandfire Resources Ltd (ASX: SFR)
- Smartgroup Corporation Ltd (ASX: SIQ)
- Service Stream Limited (ASX: SSM)
- Tassal Group Limited (ASX: TGR)
The Bravura Solutions share price has tumbled almost 17% so far this year, and its demotion out of the ASX 200 will not help.
Fellow technology business Service Stream has suffered even more, taking a 33% haircut off its share price year-to-date. The Motley Fool reported last week it's one of the most shorted stocks on the ASX.
The ASX 200 is a group of the 200 largest companies on the bourse. Membership is updated quarterly.
The above additions and removals will occur before market open on Monday 22 March.
