05/09/2008 - 09:03

Avoca, Moly Mines join S&P/ASX indices

05/09/2008 - 09:03

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It may have been a tough past six months for the resource sector but not so according to Standard & Poor's as changes to its S&P/ASX indices reveal a majority of inclusions being resource stocks.

Avoca, Moly Mines join S&P/ASX indices

It may have been a tough past six months for the resource sector but not so according to Standard & Poor's as changes to its S&P/ASX indices reveal a majority of inclusions being resource stocks.

Perth gold company Avoca Resources Ltd and OM Holdings have been included in the S&P/ASX 20 while troubled base metals miner Perilya Ltd has been removed.

Companies deleted from the major indices include troubled firms such as Babcock & Brown, Allco Finance Group, ABC Learning Centres, Challenger Financial Services, Octaviar (formerly MFS), and Centro Properties Group.

Standard & Poor's Index Services associate director Simon Karaban said the majority of companies included in the S&P/ASX 300 were resource firms.

"The aggregate out-performance of resources stocks relative to the broader market over the last six months has significantly boosted the index eligibility of resources firms," he said.

"It therefore comes at no surprise that approximately 75 per cent of the inclusions to the S&P/ASX 300 were resources-based securities, which includes energy and metals and mining stocks."

The S&P/ASX 200 and the S&P/ASX 300, together with component indices, have been reviewed as part of the September quarterly rebalance, Standard & Poor's said.

Western Australian companies included in the S&P/ASX 300 include Mineral Resources Ltd, Apex Minerals NL, Brockman Resources Ltd, Giralia Resources NL, United Minerals Corporation NL, Moly Mines Ltd, Cape Lambert Iron Ore Ltd, Carbon Energy Ltd and Strike Resources Ltd.

Removals include Credit Corp Group, Record Reality, Rubicon America Trust, Rubicon Japan Trust, Rubicon Europe Trust, Flexigroup, City Pacific and Australian Education Trust.

The quarterly rebalance considers the aggregate market capitalisation and liquidity of stocks over the last six months as a basis for eligibility.

Under the S&P/ASX 20, Newcrest Mining was added, while Stockland was removed.

In the S&P/ASX 50, Incitec Pivot and Lihir Gold were included, while Mirvac Group and Babcock & Brown were removed.

Changes will come into effect from the close of trade on September 19, 2008.

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