12/06/2020 - 15:33

Saracen moves up as Seven West dropped

12/06/2020 - 15:33

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Saracen moves up as Seven West dropped
Saracen is led by managing director Raleigh Finlayson. Photo: Gabriel Oliveira

Gold miner Saracen Mineral Holdings has been added to the S&P/ASX 100 stock index, reflecting strong growth in the company’s market value this year, while Seven West Media’s steep slide has seen it removed from the ASX300 index.

The stock indices are based on the market value of listed companies as well as the liquidity, or turnover, in each stock.

Saracen’s share price has risen from $3.30 at the start of the year to about $4.70 currently, giving it a market value of $5.3 billion.

The gold miner’s inclusion in the ASX100 index is likely to be a fillip for the Raleigh Finlayson-led company, as it will come on to the radar of investment funds that focus on larger, blue chip stocks.

NEXTDC has also been added to the ASX100 index.

The Sydney-based company owns and operates data centres and is close to completing a major new centre on Newcastle St in Perth.

Saracen and NEXTDC have replaced shopping centre owner Unibail-Rodamco-Westfield and miner Whitehaven Coal.

The removal of Seven West Media from the ASX300 index highlights the waning fortunes of the owner of the Seven television network and publisher of The West Australian.

Having traded as high as $6.50 in 2010, Seven West’s share price fell as low as 6.1 cents early this year and is currently at 14.5 cents.

The company is controlled by Kerry Stokes, who paid $11 a share in 2006 when he was seeking control of Seven West’s forerunner, WA Newspapers Holdings.

Among other changes announced today, gaming machine company Aristocrat Leisure has been added to the ASX20 index at the expense of Amcor.

The A2 Milk Company has been added to the ASX50 index, while AMP has been removed, reflecting a steep two-year fall in the market value of the financial services giant.

The ASX200 index has also been updated, with litigation funder Omni Bridgeway and Perseus Mining among five additions while lithium miner Pilbara Minerals is among the deletions.

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