It's that time of the year again when S&P Dow Jones Indices announces the rebalance of the S&P/ASX Indices.
According to the release, there will be a total of five companies entering the S&P/ASX 200 Index (ASX: XJO) at the next rebalance later this month on 18 September.
To begin with, let's take a look at the new additions to the benchmark index.
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Which ASX shares are entering the ASX 200 index?
The first ASX share to enter the index this month is Data#3 Limited (ASX: DTL). It is an information and communications technology company.
Gold miners Genesis Minerals Ltd (ASX: GMD) and Ramelius Resources Ltd (ASX: RMS) have also been added to the ASX 200 index. The former recently acquired the Leonora assets from St Barbara Ltd (ASX: SBM).
Another new entrant to the index is high-flying Neuren Pharmaceuticals Ltd (ASX: NEU). This pharmaceutical company's shares have rocketed higher this year thanks to its game-changing agreement with North American partner Acadia Pharmaceuticals (NASDAQ: ACAD).
Finally, the credibility of the ASX 200 index is once again questioned with the addition of meme stock Weebit Nano Ltd (ASX: WBT).
However, some short sellers may be happy with this news, as its inclusion allows institutional investors with strict investment mandates to now target the highly speculative semiconductor company.
Which shares are being kicked out?
It is a case of one meme stock in, one meme stock out for the ASX 200 index this quarter.
Weebit Nano is entering the index as Brainchip Holdings Ltd (ASX: BRN) leaves it. This semiconductor company has been delivering very strong costs growth this year and that's about it. Recent revenue was less than a café and its losses doubled to US$17.15 million.
Also leaving the index are Abacus Group (ASX: ABG), Abacus Storage King (ASX: ASK), Imugene Limited (ASX: IMU), Lake Resources N.L. (ASX: LKE), and Syrah Resources Ltd (ASX: SYR).
As you might have noticed, there are six companies leaving the ASX 200 index and five entering it. That's because there have been 201 ASX shares in the index since Abacus Group spun off its Storage King business into a separate listing.
