05/12/2008 - 10:21

Great Southern dropped in S&P reshuffle

05/12/2008 - 10:21

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Agribusiness Great Southern has been dropped from Standard & Poor's ASX 200 index which has slumped 26 per cent since September's index rebalance.

Agribusiness Great Southern has been dropped from Standard & Poor's ASX 200 index which has slumped 26 per cent since September's index rebalance.

Great Southern along with Melbourne-based agribusiness investment company Timbercorp were the only two companies to be removed from the S&P/ASX 200 list, while Mid West mining stock Gindlabie Metals was added.

Gindalbie along with Nido Petroleum was also added to the All Australian 200 list while takeover target Perilya was removed. Great Southern was also removed from the All Australian list.

Great Southern's removal follows a loss-making year where earlier this week the company reported a loss of over $64 million including a $30 million goodwill impairment charge.

The company has also delayed an investors meeting on a proposed restructure of the company due to its falling share price, which last traded at 13.5 cents, up one cent, at 12:16 AEDT.

Meanwhile, Iluka Resources has been added to the S&P/ASX 100 list. The company last traded at $4.55, up 24 cents.

S&P said today there has been a sharp decline in the market value of all securities across all areas of the market since the last index rebalance in September 2008, with the S&P/ASX 200 falling by some 26 per cent.

"The Australian Index Committee has responded to the market turmoil in a prudent manner by providing some level of stability within a frenzied environment," associate director at S&P Index Services Simon Karaban said.

"Both the index methodology and the Australian Index Committee act to maintain stability within the index by reducing the possibility of multiple index portfolio changes in response to sudden and extreme stock price depreciation."

 

 

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