S&P Dow Jones Indices, as quite popular, help in gauging the stocks’ scenario and performance over a specific period of time. The rebalances, which are done periodically, reflect how the stocks have performed by virtue of which they are reshuffled on the indices. Below is a snapshot of a recent reshuffle of ASX stocks.
On 14 December 2018, S&P Dow Jones announced about the changes in the S&P/ASX indices which are going to be effective from 24 December 2018. S&P Dow Jones Indices happen to be the major global resource for essential index-based concepts data and research, and it is home to over 1 million indices across the spectrum of asset classes that have helped investors in trading.
As per S&P Dow Jones, from 24 December 2018 onwards, two companies namely WorleyParsons Limited (ASX: WOR) and Nine Entertainment Co. Holdings Limited (ASX: NEC) will be added to S&P/ASX 100 Index. Further, two companies namely Harvey Norman Holdings Limited (ASX: HVN) and CSR Limited (ASX: CSR) will be removed from the S&P/ASX 100 Index.
WorleyParsons Limited (ASX: WOR) is an Australian engineering company having an expertise in engineering, procurement and construction activities. Recently, the company announced that it is expecting to complete the acquisition of Jacobs Engineering Group Inc. between late February and April 2019. In the last one-year time period, WOR’s share price decreased by 8.8% on ASX as on 14 December 2018 and traded at a PE ratio of 53.130x. WOR’s shares last traded at $12.380 with a market capitalization of circa $5.79 billion as on 14 December 2018.
Another company which will be joining S&P/ASX 100 Index on 24 December 2018 is Nine Entertainment Co. Holdings Limited (ASX: NEC). Nine Entertainment is a media company which covers News, Sport, Lifestyle, and Entertainment through its different divisions which include Australian Community Media & Printing and Stuff; Publishing; Stan; and Television. Recently, the company acquired 100 percent of the issued capital in Fairfax from Fairfax shareholders. In last one year, the share price of NEC decreased by 5.41 percent on ASX as on 14 December 2018. NEC’s shares traded at $1.485 with a market capitalization of circa $2.78 billion as on 14 December 2018. The update on addition to the index did not give a respite to shareholders, as the stock fell down by about 8.9% on December 14, 2018.
Harvey Norman Holdings Limited (ASX: HVN) is a company within the Consumer Discretionary sector listed in the ASX index, and it is soon going to be removed from the S&P/ASX 100 Index. Recently the company reported an Aggregated sales of $2.88 billion for the period from 1 July 2018 to 23 November 2018 which is 2.7 percent higher than the corresponding previous period but this has still been below the expectations. In last one year, the share price of HVN decreased by 20.58 percent as on 14 December 2018 and traded at a PE ratio of 9.550x. HVN’s shares traded at $3.220 with a market capitalization of circa $3.83 billion as on 14 December 2018.
Another company which is going to be removed from the S&P/ASX 100 Index is CSR Limited (ASX: CSR) which is a leading building products company in Australia and New Zealand. In last one year, the share price of CSR decreased by 43.37 percent as on 14 December 2018 and traded at a PE ratio of 14.010x. CSR’s shares traded at $2.690 with a market capitalization of circa $1.42 billion as on 14 December 2018.
Besides the changes in S&P/ASX 100 Index, S&P Dow Jones has announced changes in other indices also which include the removal of Origin Energy Limited (ASX: ORG) from S&P/ASX 20 Index, and removal of Unibail-Rodamco-Westfield (ASX: URW) from S&P/ASX 50 Index.
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