Shares in Incannex Healthcare Ltd (ASX: IHL) roared higher to close the market on Monday.
Incannex shares closed the day up 13.04% to 26 cents apiece.
In comparison, the All Ordinaries (ASX: XAO) finished the day up 0.26%.
Why are Incannex shares smoking out the ASX?
Investors bid up Incannex shares on Monday, despite the medicinal cannabis company not releasing any announcements to the market. However, the S&P Dow Jones Indices updated its quarterly rebalance late on Friday.
As a result, a number of shares were on the move today following their addition or removal from the S&P/ASX Indices.
Incannex shares will be added to the S&P/ASX 300 Index effective prior to the open of trading on 19 September.
The inclusion to the ASX 300 Index provides a much-welcomed boost for the company's shares.
This is because fund managers must abide by their investing mandate which permits them to only buy shares included in specific indices.
Each index comprises a number of companies that have the largest market capitalisation of that group.
Incannex share price summary
In March 2022, the Incannex share price rocketed to a multi-year high of 75.5 cents before treading downhill.
Fast-forward to August, and its shares hit a 52-week low of 18.5 cents.
This means that when looking at year to date, Incannex shares are down 58.4%.
Based on today's price, Incannex is worth approximately $350.42 million and has 1.52 billion shares outstanding.
