Quarterly rebalance: These shares are joining the ASX 200 index. What's being kicked out?

These are the changes to the ASX 200 index later this month.

Contented looking man leans back in his chair at his desk and smiles.

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After the market close on Friday, S&P Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices.

This latest update reveals that there will be three ASX shares kicked out of the benchmark ASX 200 index later this month.

Let's now take a look at which shares are being removed and then what will be replacing them.

Which ASX 200 shares are leaving the ASX 200?

The ASX 200 shares that have been kicked out are property companies Cromwell Property Group (ASX: CMW) Growthpoint Properties Australia Ltd (ASX: GOZ), and administration services company Link Administration Holdings Ltd (ASX: LNK).

Over the last 12 months, their shares have fallen 40%, 28%, and 61%, respectively. This has dragged their market capitalisations to a level that means there are now more suitable options for ASX 200 index inclusion.

The bad news for the evicted ASX 200 shares is that selling pressure could now increase. That's because index funds that track the ASX 200 will be forced to sell their shares. In addition, fund managers that have strict investment mandates may have to sell if they aren't permitted to invest outside the benchmark index.

What are the new additions?

Joining the ASX 200 index on 18 December will be uranium developer Boss Energy Ltd (ASX: BOE), mortgage insurer Helia Group Ltd (ASX: HLI), formerly known as Genworth Mortgage Insurance Australia, and fleet management and salary packaging company Smartgroup Corporation Ltd (ASX: SIQ).

Their shares are up 78%, 51%, and 70%, respectively, over the last 12 months.

And, in contrast to the three companies that have been kicked out, they could experience an increase in demand for their shares as index funds buy shares and they become available to fund managers with the aforementioned investment mandates.

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. has positions in and has recommended Link Administration. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Digital rocket on a laptop.
Broker Notes

Is the Nvidia share price on course to reach US$1,400?

You betcha, says one analyst.

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Accent, Austal, Newmont, and Sandfire shares are plunging today

These ASX shares are ending the week in the red. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Aussie Broadband, Australian Ethical, Jumbo, and Vulcan are racing higher

These ASX shares are ending the week on a high. But why?

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Lithium and cheese: Bell Potter tips 20%+ returns from these ASX 200 stocks

Big gains could be coming from very different sides of the market.

Read more »

A smiling boy holds a toy plane aloft while a girl watches on from a car near an airport runway.
Travel Shares

Why Qantas shares could rise over 50%

The Flying Kangaroo's shares could be dirt cheap according to one broker.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Opinions

A once-in-a-decade chance to get rich from ASX 200 shares?

The ASX share market is a great wealth-builder.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Friday

A strong finish to the week is expected for the ASX 200 index.

Read more »