These ASX shares are being dumped from the ASX 200 index this month

A man packs up a box of belongings at his desk as he prepares to leave the office.

A man packs up a box of belongings at his desk as he prepares to leave the office.

Every three months, S&P Dow Jones Indices announces its quarterly rebalance of the S&P/ASX Indices.

This sees a number of ASX shares move into and out of particularly indices, such as the All Ordinaries index, the S&P/ASX 200 Index, and the S&P/ASX 100 index.

On Friday, the index solutions company released its latest rebalance of these indices and revealed that four shares will be dumped from the widely followed, benchmark ASX 200 index when the index rebalances in two weeks on 20 March.

Which ASX 200 shares are being dumped?

The four ASX 200 shares that will be kicked out later this month are building materials company Adbri Ltd (ASX: ABC), battery technology company Novonix Ltd (ASX: NVX), gold miner Ramelius Resources Ltd (ASX: RMS), and fleet management company Smartgroup Corporation Ltd (ASX: SIQ).

Normally, this sort of news would put a lot of pressure on a company’s share price. That’s because the sell side will soon become stacked with sell orders from funds that track the index and fund managers that have strict investment mandates allowing them to only invest in companies in the ASX 200 index and above.

However, with the market charging higher today following a very strong night of trade on Wall Street on Friday, these shares aren’t faring too badly given the circumstances. Here’s that state of play:

  • The Adbri share price is up 1%
  • The Novonix share price is 2.5%
  • The Ramelius share price is up 1%
  • The Smartgroup share price is down slightly

Replacing these ASX 200 shares in the illustrious index will be location technology company Life360 Inc (ASX: 360), construction and mining contractor NRW Holdings Limited (ASX: NWH), medical device company Polynovo Ltd (ASX: PNV), and graphite producer Syrah Resources Ltd (ASX: SYR).

The post These ASX shares are being dumped from the ASX 200 index this month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and PolyNovo. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

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