Quarterly rebalance: Appen kicked out of ASX 100, Uniti added to ASX 200

A number of shares will be on watch on Tuesday after S&P Dow Jones Indices announced its quarterly changes to …

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A number of shares will be on watch on Tuesday after S&P Dow Jones Indices announced its quarterly changes to the S&P/ASX Indices. These are effective prior to the open of trading on 21 June and follow its June quarterly review.

Here is a summary of some of the key changes being made:

ASX 50

Gold mining giant Northern Star Resources Limited (ASX: NST) will join the exclusive ASX 50 index next week. It will be replacing commercial explosives and blasting systems provider Orica Limited (ASX: ORI).

ASX 100

Retail giant Harvey Norman Holdings Limited (ASX: HVN) and fellow retailer Metcash Limited (ASX: MTS) have been added to the ASX 100 index at the next quarterly rebalance. They will be replacing struggling artificial intelligence data services company Appen Ltd (ASX: APX) and telco TPG Telecom Ltd (ASX: TPG).

ASX 200

Joining the benchmark ASX 200 index are gold explorer Chalice Mining Ltd (ASX: CHN), lithium giant Orocobre Limited (ASX: ORE), and growing telco Uniti Group Ltd (ASX: UWL). They will take the place of shipbuilder Austal Limited (ASX: ASB), mining services company Perenti Global Limited (ASX: PRN), and embattled gold miner Resolute Mining Limited (ASX: RSG) next week.

In respect to Uniti, it notes that it joins the ASX 200 index after just over two years of being a listed company.

Uniti’s Chairman, Graeme Barclay, commented: “Uniti’s inclusion in the ASX 200 Index is validation of the successful implementation of our strategy, to become the preeminent challenger in the FTTP market, with a clear focus on profitably deploying, managing and maximising the utilisation of our own fast-growing national data infrastructure network within our Wholesale and Infrastructure business unit, well supported by growth and profitability in both our Consumer & Business and CPaaS business units.”

What now?

Given how some fund managers have strict investment mandates that mean they can only buy shares from certain indices, this news is likely to be a boost to the shares being added to indices and the opposite for those removed. In addition to this, index-tracking ETFs will need to buy and sell these shares in order to accurately reflect the indices.

This could make it an eventful day for some of the shares listed above.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd and Austal Limited. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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