ASX index rebalance

Spring clean

The September review of the S&P/ASX 200 indices resulted in approximately 150 changes, including nine in the S&P/ASX 200 index. 

S&P/ASX 200 total changes

Newly added companies to the ASX 200 include Dalrymple Bay Infrastructure, Droneshield, Ebos Group, GQG Partners, Greatland Resources, IperionX, Perenti, Superloop, and Tuas.

These will replace nine stocks being removed, such as Clarity Pharmaceuticals, Nufarm, Polynovo, and Smartgroup, effective at the close of trading on Friday, 19 September.

S&P/ASX 200 changes and estimated market impact

The latest additions have an average float-adjusted market capitalisation of $2.06 billion according to Morgan Stanley research. This figure is nearly twice the historical average and around $500 million higher than announcements in March and June.

ASX 200 largest outperformers and largest underperformers

Who's in?

Greatland Resources (ASX:GRR)

Greatland Resources stands out with its estimated index weight of 11.8 basis points (bp) and inclusion in the ASX 300 and Small Ordinaries indices, establishing it as a key stock for index trackers.

Greatland Resources debuted on the ASX on 24 June, with a market capitalisation of $4.9 billion. The company owns the Telfer gold-copper mine and the adjacent Havieron development project in Western Australia. 

Greatland Resources daily candlestick chart

Despite shares falling around 14% since listing, analysts remain optimistic about its long-term potential, recording multiple 'strong buy' and 'buy' recommendations and an average price target of $8.04, predicting a potential 28% rise.

Greatland Resources historical trends and price targets

DroneShield (ASX:DRO)

DroneShield shares have sky-rocketed in the past 12 months, up more than 140%, giving it a market capitalisation of $2.8 billion. 

DroneShield daily candlestick chart

Analysts are overwhelmingly positive on further upside for the stock, with the average broker recommendation on Droneshield a 'buy', with a target price of $3.65, suggesting it can rise another 15%.

DroneShield historical trends and price targets

However, ASX Tradewatch data suggests caution, indicating potential bearish trends as the five-day moving average tracks below the 20 and 50-day moving averages.

DroneShield buy/sell indicators and analyst projections

Who's out?

Smartgroup (ASX:SMP)

Smartgroup is among the stocks exiting the S&P/ASX 200 by the start of trade on 22 September.

Shares have risen about 10% year-to-date and remain stable over the past year, with a market capitalisation of around $1.18 billion. 

Smartgroup daily candlestick chart

ASX Tradewatch data show shares in a strong bullish pattern, confirmed by multiple indicators, specifically the five-day moving average above the 20 and 50-day averages. The 200-day moving average is also trending higher.

Smartgroup historical trends and price targets

Similarly, the market outlook for Smartgroup is positive, with the average broker recommendation a 'buy', and an average price target of $9.24, suggesting it could rise a further 6%.

Morgans has a 'hold', while Macquarie has an 'outperform', noting Smartgroup’s first-half profit beat its expectations.

Chief Financial Officer Jason King mentions that 2026 will be a transformative year, focusing on back-office efficiency and enhancing customer experiences, including the adoption of artificial intelligence (AI).

Smartgroup buy/sell indicators and analyst projections