\n\tBy Greg Peel<\/p>\n
\n\tStandard & Poor's will announce the results of its March index review on Friday morning, with March 16 being the last trading day before the changes are implemented.<\/p>\n
\n\tAs always, it must be noted that while “Top X” indices give due consideration to simple market capitalisation<\/span> and liquidity requirements there is also a subjective element, in that the publishers try to maintain diversification of sectors and businesses in each index in order to be a best representation of the Australian economy.<\/p>\n \n\tFor the S&P\/ASX<\/span> 20, JP Morgan's quant<\/span> analysts are not expecting any changes, but suggests Asciano<\/span> ((AIO<\/span>)) could replace Macquarie Group ((MQG<\/span>)).<\/p>\n \n\tThe same goes for the ASX<\/span> 50, and the analysts don't think Dexus<\/span> ((DXS<\/span>)) is likely to replace Toll Holdings ((TOL<\/span>)).<\/p>\n \n\tFor the ASX<\/span> 100, the analysts believe the revamped Centro Retail Fund ((CRF<\/span>)) should replace Goodman Fielder ((GFF<\/span>)) and that Beach Energy ((BPT<\/span>)) could replace Transfield<\/span> ((TSE<\/span>)).<\/p>\n \n\tIn the benchmark ASX<\/span> 200, JP Morgan sees Centro Retail replacing Kagara<\/span> Zinc ((KZL<\/span>)) and believes Super Retail ((SUL<\/span>)) could replace White Energy ((WEC<\/span>)).<\/p>\n \n\tMoving down into the smaller caps, to the ASX<\/span> 300 the analysts are expecting the addition of Noble Mineral Resources ((NMG<\/span>)), Drillsearch<\/span> Energy ((DLS<\/span>)), Northern Star Resources ((NST<\/span>)), Red 5 ((RED)), Hillgrove<\/span> Resources ((HGO<\/span>)), Neonenergy<\/span> ((NEN<\/span>)), Azimuth ((AZH<\/span>)), Redfork<\/span> Energy ((RFE<\/span>)), Orocobre<\/span> ((ORE)), Goldroad<\/span> ((GOR<\/span>)), ABM<\/span> Resources ((ABU)), Buru<\/span> Energy ((BRU<\/span>)), RHG<\/span> ((RHG<\/span>)), Sundance Energy ((SEA)), Alcyone<\/span> Resources ((AYN<\/span>)), and Empire Oil & Gas ((EGO)).<\/p>\n \n\tThey are expected to replace Hastie<\/span> Group ((HST<\/span>)), Skilled Group ((SKE<\/span>)), Austal<\/span> ((ASB<\/span>)), STW<\/span> Communications ((SGN<\/span>)), Clough<\/span> ((CLO<\/span>)), Challenger Infrastructure Fund ((CIF)), and Straits ((SRQ<\/span>)).<\/p>\n \n\tYes, a world of diversity in those additions (?). If you are wondering why there are more additions than subtractions in any index, the answer is an index does not necessarily have to include the number of stocks it suggests. It is often more.<\/p>\n \n\tFor the All Australia 50, JP Morgan is not expecting any changes and does not think OZ Minerals ((OZL<\/span>)) will replace Toll Holdings.<\/p>\n \n\tFor the All Australia 200, the analysts suggests Centro Retail should replace Australian Agricultural Company ((AAC<\/span>)) while there is a possibility Super Retail, Troy Resources ((TRY)) and maybe Ivanhoe<\/span> Australia ((IVA)) could replace Alkane<\/span> Resources ((ALK<\/span>)), Kagara<\/span> and maybe White Energy.<\/p>\n \n\tTraders should take note that index-tracking fund managers will, within the allotted period, need to blindly buy additions and sell subtractions.
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