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There's going to be at least a minor reshuffle in the S&P/ASX indices this new quarter because of the merger of Brickworks Limited (ASX: BKW) and Washington H. Soul Pattinson & Company (ASX: SOL).
Wilsons Advisory has released some early predictions for changes, and says the aforementioned merger is likely to lead to Soul Patts (as SOL is known) being added to the S&P/ASX 50 Index (ASX: XFL), with Amcor Plc (ASX: AMC) likely to be removed.
When it comes to the S&P/ASX 100 Index (ASX: XTO), Wilsons expects payment company Zip Co Limited (ASX: ZIP) to be added, and plumbing supplies company Reece Limited (ASX: REH) to be dropped.
A second interchange sits at the upper end of what we consider 'possible,' as Reliance Worldwide is ranked #115, just outside the strong removal threshold of #116. If its rank deteriorates to #116, a second interchange would be expected, with Reliance Worldwide removed and Capricorn Metals being expected to be added.
Inclusion in an index is notable for a stock, as inclusion means it must be purchased by fund managers or exchange-traded funds that track the index.
Wilsons is not predicting any changes to the S&P/ASX 20 Index (ASX: XTL) this quarter.
