\n\tBy Greg Peel<\/p>\n
\n\tThe various “Top” indices published by Standard & Poor's and the ASX (20,50,100,200,300) reflect market capitalisation weightings, however there is also a liquidity criterion which means inclusions are not simply objective. Hence brokers will attempt to predict which stocks are likely to be promoted to and which relegated from the indices at each scheduled readjustment.<\/p>\n
\n\tIndex inclusions are important given the vast number of fund managers locally and offshore who offer index-tracking equity portfolios. If a stock is included, that stock must be purchased by those indices and likewise vice versa. There is thus potential for some sharp price movements in the lead-up to, and on the announcement of, such changes.<\/p>\n
\n\tThe next round of changes will be announced on June 3 to be implemented come the commencement of trading on Monday June 20. That leaves June 17 as the last day of trading before the changes.<\/p>\n
\n\tNo changes are expected for the ASX 20.<\/p>\n
\n\tThe ASX 50 will be impacted by next week's demerger of Tabcorp ((TAH)) and Echo Entertainment leading both to be excluded, JP Morgan believes, and OZ Minerals ((OZL)) to take their place.<\/p>\n
\n\tThrow in the demerger of Foster's ((FGL)) and Treasury Estate Wines ((TWE)) and suddenly there will be 102 stocks in the ASX 100. JP Morgan and Morgan Stanley both agree that Aristocrat Leisure ((ALL)) should thus suffer relegation but JPM is tipping Charter Hall Office REIT ((CQO)) as the other loser while MS favours SevenWest ((SWM)).<\/p>\n
\n\tIn the ASX 200, JPM and MS agree Carnarvon Petroleum ((CVN)), ROC Oil ((ROC)) and Mincor ((MCR)) will get the boot. Both offer Aston Resources ((AZT)) and Campbell Bros ((CPB)) as replacements, but MS suggests there might be an issue over CPB liquidity in which case Bathurst Resources ((BTU)) would substitute.<\/p>\n
\n\tThe ASX 300 will not be reviewed until September.<\/p>\n","protected":false},"excerpt":{"rendered":"
Brokers predict which stocks will be promoted\/relegated from the various S&P\/ASX indices in June.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/58227"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=58227"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/58227\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=58227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=58227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=58227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}