ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200

Here are the changes happening later this month on the ASX indices…

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A number of ASX shares will be on watch today after S&P Dow Jones Indices announced changes to the S&P/ASX Indices.

These will be effective prior to the open of trading on 20 September, as a result of the September quarterly review.

ASX 50 index

Sleep treatment company ResMed Inc (ASX: RMD) and gaming company Tabcorp Holdings Limited (ASX: TAH) shares will be added to the ASX 50 index later this month. They will be replacing struggling infant formula company A2 Milk Company Ltd (ASX: A2M), energy company AGL Energy Limited (ASX: AGL) and fuel retailer Ampol Ltd (ASX: ALD).

There is an additional removal from the ASX 50 index due to the recent Woolworths Group Limited (ASX: WOW) demerger of Endeavour Group Limited (ASX: EDV).

ASX 100 index

UK bank Virgin Money UK (ASX: VUK) will be joining the ASX 100 index. This will be at the expense of building products company Boral Limited (ASX: BLD) and energy producer Beach Energy Ltd (ASX: BPT).

Once again, there is an additional removal to reflect the addition of Endeavour to the index following its demerger from Woolworths during the last quarter.

ASX 200 index

There will be four new additions to the benchmark ASX 200 index on 20 September. Joining the index are Lifestyle Communities Limited (ASX: LIC), Pinnacle Investment Management Group Ltd (ASX: PNI), Sealink Travel Group Ltd (ASX: SLK), and Tyro Payments Ltd (ASX: TYR).

Being dumped from the index later this month are G8 Education Ltd (ASX: GEM), NRW Holdings Limited (ASX: NWH), Nuix Ltd (ASX: NXL), and Westgold Resources Ltd (ASX: WGX).

What now?

The shares being added to indices could be given a boost between now and 20 September. This is due to index funds that track certain indices being required to purchase those shares.

In addition, some fund managers have strict mandates allowing them to only buy shares from certain indices. This could allow them to buy some of these shares at last.

Conversely, the shares being removed from indices could come under pressure today for the opposite reasons.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended PINNACLE FPO and Tyro Payments. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd and ResMed. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO. The Motley Fool Australia has recommended A2 Milk and ResMed Inc. 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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