Latest from For Bar on Index Positions below.
Jostling for Position
S&P DJI have confirmed that no constituent changes will be made to the benchmark indices at the June 2021 quarterly
index review. There are a number of changes to index shares and Float Adjustment Weighting Factors (AWF). Changes are
effective close of market, Friday, 18 June 2021.
No constituent changes
As expected, the S&P/NZX index review for June 2021 contained no constituent changes for the benchmark indices. We do not
foresee any constituent changes in the near to medium term.
The Warehouse (WHS) has jumped up the ranks in our inclusion/exclusion index model, following the sell down of 31.6m shares by
Foodstuffs. However, at a current six month average free float market cap of $366m, it still remains below the automatic inclusion
level of >$440m. Assuming liquidity conditions are met, when we roll forward prices using a five-day average we see the following
order of eligibility for non index members: ERD ($400m), WHS ($374m) & HLG ($352m) and an automatic inclusion level of >$429m.
Under this scenario, THL ($311m), NPH ($306m) & SKT ($295m) are the lowest ranked index members for the benchmark 50 indices,
however, they remain safe, sitting above the automatic exclusion level of $279m. Note, we have assumed the takeover of TLT is
completed under this scenario.
Figure 1. June 2021 Review: Confirmed changes
Index Enter Exit Expected Weight (rank)
S&P/NZX 10 no changes
S&P/NZX 20 no changes
S&P/NZX 50 no changes
S&P/NZX 50 Portfolio no changes
Source: Forsyth Barr analysis, S&P DJI
Re-weighting changes
As with each quarterly review, index shares, Investible Weighting Factors (IWFs) and AWFs are also updated. The companies with the
largest re-weightings are presented in Figure 2.
Figure 2. June 2021 Review: Major re-weighting changes expected
Index Current Weight Expected Weight Total Change
S&P/NZX50 Index
OCA 0.71% 0.80% +0.09%
S&P/NZX 50 Portfolio Index
ATM 3.12% 4.45% +1.33%
RYM 4.13% 5.05% +0.93%
AIA 5.18% 4.88% -0.30%
IFT 5.18% 4.86% -0.32%
MFT 5.36% 4.86% -0.50%
FBU 5.59% 4.89% -0.70%
CEN 5.83% 5.10% -0.73%