Guess which ASX All Ords stock just rocketed 9% after being added to the ASX 200

Investors are bidding up the ASX All Ords stock ahead of its addition to the ASX 200.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published June 12, 2024 12:17 pm AEST

This ASX All Ords stock is enjoying a tremendous run today after investors learned it was graduating from the All Ordinaries Index (ASX: XAO) and will soon be joining the S&P/ASX 200 Index (ASX: XJO).

Shares in the bank stock, which specialises in business lending, closed yesterday trading for $1.30. As we head into the Wednesday lunch hour, shares are changing hands for $1.42 apiece, up 9.2%.

For some context, the All Ordinaries and the ASX 200 are both down 0.7% at this same time.

Any guesses?

If you said Judo Capital Holdings Ltd (ASX: JDO), go to the head of the virtual class.

Here's what's happening with the soon-to-be-relisted ASX All Ords stock.

A small child in a judo outfit with a green belt strikes a martial arts pose with his hand thrust forward. — Image source: Getty Images

ASX All Ords stock soars on index upgrade

In an announcement released after market close yesterday, S&P Dow Jones Indices said that it would remove building products company CSR Ltd (ASX: CSR) from the ASX 200 as the company is being acquired by Compagnie de Saint-Gobain.

That takeover unfolded in late February when Saint-Gobain offered $9.00 a share to acquire all of CSR's stock. The takeover, and CSR's removal from the ASX, remains subject to shareholder and final court approval of the scheme of arrangement.

This is proving to be good news for Judo shareholders, as the ASX All Ords stock will replace CSR in the ASX 200 effective prior to the open of trading on Thursday, June 20.

Stocks often benefit when they're moved to the more prominent indexes, like the ASX 200. That's because these companies tend to get more media and broker coverage. There are also a lot of fund managers who can only invest in larger companies listed on the ASX 200. And, as of next week, Judo will meet that requirement.

What's been going right for Judo shares?

The ASX All Ords stock is joining the ASX 200 following a tremendous 41% share price surge in 2024. That gives Judo a market cap of almost $1.6 billion, which sees it move into the group of top 200 listed companies in Australia.

In its most recent market update on 9 May, the bank reported $93.1 million in profit before tax for the nine months ending 31 March amid ongoing lending growth.

Looking ahead, the ASX All Ords stock (soon to be ASX 200 stock) forecast FY 2024 profit before tax, excluding non-recurring items, of $107 million to $112 million. FY 2025 guidance is targeting 15% year on year profit before tax growth.

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