background image

The 5 ASX stocks that will likely be supported vs the 17 facing headwinds

Equities 6 minutes to read
jessica-amir-400x400 white BG
Jessica Amir

Market Strategist

Summary:  What an important time of year. Not only is it end of half year in the US and End Of Financial Year in Australia, but the index and benchmark creator, S&P Dow Jones Indices is adding and removing stocks from key ASX indices ahead of June 20. So, we are sharing the five stocks that could likely to be supported, and the 17 stocks that could face headwinds after being removed from key indices.


As the news broke late Friday afternoon, that the S&P Dow Jones Indices quarterly rebalance was announced, we were quick to Tweet it. No surprises for guessing, the benchmark ASX200 index will be welcoming 4 mostly commodity companies who have been outperforming the market, while it is booting out 4 tech companies and one investment manager who’s shares have taken a slide as we nestle into higher for longer interest rates.

It’s important to note, the S&P Dow Jones Indices reveals which stocks it will add/remove from various key indices ahead of time, so investors, ETF providers and fund managers have a head start, before the changes take effect, before Monday 20 June. This means, if a stock is added to the index, ETF providers who copycat indices will typically be forced to compulsorily buy stocks being added and sell stocks being removed from key indices.

Simultaneity, it’s already a very busy time of year; Half Year rebalancing in the US, and End of Financial Year rebalancing in Australia, takes place prior to June 30. This is typically where we see investment managers bring their asset allocations back into alignment. This might mean fund managers trim profits from stocks and sectors that have done well. And they add to positions in those stocks and sectors that have underperformed year-on-year, to ensure their funds meet their set mandates.

However now, as 5 ASX stocks will be added and 17 will ousted from key indices before June 20 2022, it’s really important to note which stocks they are, as they may face bigger swings in there prices (due to S&P Rebalancing and EOFY).


In the ASX50

  • Mineral Resources (MIN) will be ADDED.

In the ASX50

  • Block (SQ2) will be REMOVED


In the ASX100

  •  Magellan Financial Group (MFG) will be REMOVED

In the ASX200


The following stocks will be ADDED

  • Brainchip (BRN)

  • Core Lithium (CXO)

  • Lake Resources (LKE) and

  • New Hope Corporation (NHC)

In the ASX200

The following stocks will be REMOVED:

  • Appen (APX)

  • Codan (CDN)

  • Polynovo (PNV)

  • PTM Platinum Asset Management (PTM)

  • Tyro Payments (TYR).


In the ASX Technology Index

The following will be REMOVED:

  • Adore Beauty Group (ABY)

  • Advanced Human Imaging (AHI)

  • Catapult Group (CAT)

  • International Limited (DW8)

  • Envirosuite (EVS)

  • Hipages Group Holdings (HPG)

  • Spenda (SPX)

  • Symbio Holdings (SYM)

  • Volpara Health Technologies (VHT)

  • Vection Technologies (VR1)

And lastly, as we previously alluded to in our story on how to pick stocks, don’t forget you can stay abreast of index rebalances by following news on your favourite indices here.


For daily commentary, follow our global teams insights here. 



Quarterly Outlook

01 /

  • Macro Outlook: The US rate cut cycle has begun

    Quarterly Outlook

    Macro Outlook: The US rate cut cycle has begun

    Peter Garnry

    Chief Investment Strategist

    The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c...
  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

  • Equity Outlook: Will lower rates lift all boats in equities?

    Quarterly Outlook

    Equity Outlook: Will lower rates lift all boats in equities?

    Peter Garnry

    Chief Investment Strategist

    After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto...
  • FX Outlook: USD in limbo amid political and policy jitters

    Quarterly Outlook

    FX Outlook: USD in limbo amid political and policy jitters

    Charu Chanana

    Chief Investment Strategist

    As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ...
  • Commodity Outlook: Gold and silver continue to shine bright

    Quarterly Outlook

    Commodity Outlook: Gold and silver continue to shine bright

    Ole Hansen

    Head of Commodity Strategy

  • FX: Risk-on currencies to surge against havens

    Quarterly Outlook

    FX: Risk-on currencies to surge against havens

    Charu Chanana

    Chief Investment Strategist

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo...
  • Equities: Are we blowing bubbles again

    Quarterly Outlook

    Equities: Are we blowing bubbles again

    Peter Garnry

    Chief Investment Strategist

    Explore key trends and opportunities in European equities and electrification theme as market dynami...
  • Macro: Sandcastle economics

    Quarterly Outlook

    Macro: Sandcastle economics

    Peter Garnry

    Chief Investment Strategist

    Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p...
  • Bonds: What to do until inflation stabilises

    Quarterly Outlook

    Bonds: What to do until inflation stabilises

    Althea Spinozzi

    Head of Fixed Income Strategy

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ...
  • Commodities: Energy and grains in focus as metals pause

    Quarterly Outlook

    Commodities: Energy and grains in focus as metals pause

    Ole Hansen

    Head of Commodity Strategy

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.