Sign up Australia
Proactive Investors - Run By Investors For Investors

Retail Food Group and AMP tumble out of key indices following share price collapses

There have been changes in the usually quiet major indices.
Retail Food Group and AMP tumble out of key indices following share price collapses
Index trackers will start to adjust their positions

The S&P Dow Jones Indices June quarterly rebalance is out, and as expected there has been a shake up in the composition after some well publicised underperformance, in particular from AMP, Retail Food Group and Myer.

Changes will take effect at the open of trading on 18 June 2018.

First up is the S&P/ASX 20 Index which has welcomed Amcor Ltd (ASX:AMC) while dismissing AMP Ltd (ASX:AMP).

AMP shares continue to hit fresh 12-month lows, last changing hands at $3.62, or 33% lower than its valuation just three-months ago.

Moving to the S&P/ASX 50 Index, entering is Cochlear Ltd (ASX:COH) while Incitec Pivot Ltd (ASX:IPL) exited.

Incitec shares have been drifting over the past six-months, last trading at $3.51, or 14% lower than its 12-month high in December 2017.

There was no change to the S&P/ASX All Australian 50.

In an interesting move in the S&P/ASX 100 Index, coming back in is Whitehaven Coal Ltd (ASX:WHC), at the expense of GrainCorp Ltd (ASX:GNC).

Whitehaven has been a star performer over the past year, more than doubling in valuation to $5.58.

Last month Whitehaven entered into an agreement to acquire the remaining 25% interest in the Winchester South metallurgical coal project.

Movement in the broader indices

The S&P/ASX 200 Index delivered three changes, and heading in are Afterpay Touch Group Ltd (ASX:APT), Appen Ltd (ASX:APX) and Inghams Group Ltd (ASX:ING).

The most notable exit was the besieged Retail Food Group Ltd (ASX:RFG), whose shares continue to tumble as the company struggles with the underperformance of its franchise model, and ongoing negative sentiment regarding both retail franchising and the company in particular.

In its most recent earning update, the company outlined that it expects FY18 underlying NPAT to be $34.5 million and statutory NPAT to be a loss of $87.6 million, taking account of the substantial impairment charges booked at 31 December 2017.

Shares last traded at $0.67, compared to sitting comfortably above $5 this time last year.

Also leaving the index was Asaleo Care Ltd (ASX:AHY) and Iron Mountain Incorporated Ltd (ASX:INM).

The final update is the S&P/ASX All Australian 200 Index.

Heading in are BIN Bingo Industries Ltd (ASX:BIN), Clean TeQ Holdings Ltd (ASX:CLQ) and Kidman Resources Ltd (ASX:KDR), while making room is Australian Agricultural Company Ltd (ASX:AAC), Myer Holdings Ltd (ASX:MYR) and Retail Food Group Ltd (ASX:RFG).

View full RFG profile View Profile

Retail Food Group Ltd Timeline

Related Articles

ROBO Global US CEO Travis Briggs
August 15 2018
Investors can buy directly into the popular ROBO ETF based on the benchmark index comprised of 87 top robotics, automation and AI companies.
Australian dollars
September 28 2018
The company is now achieving positive earnings before interest, tax, depreciation and amortisation results each month.
Flow chart of the Hazer Process
March 21 2018
The Hazer Process could disrupt the $100 billion hydrogen production market.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use