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S&P refreshes its leading market indices
07/03/2008 09:16:53 AM


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Standard & Poors is making changes to its leading market indices, with some major names dropping out of higher indices to be replaced by up and comers.

Toll Holdings spin off Asciano Ltd, gaming machine maker Aristocrat Leisure and troubled Centro Properties Group all are to be removed from the S&P/ASX Top 50 index.

They will be replaced by emerging iron ore heavyweight Fortescue Metals Group, builder Leighton Holdings Ltd and engineering services provider WorleyParsons Ltd.

In the Top 100, engineer Transfield Services Ltd will replace Sigma Pharmaceuticals.

Other changes will be made to the Top 200, Top 300 and the All Ordinaries.

There will be no changes to the S&P/ASX Top 20.

Simon Karaban, associate director at Standard & Poors Index Services, said index methodology, together with "sensible index governance", had limited the scope of the changes despite severe market conditions.

"We have maintained the cost-effectiveness of passive investment portfolios by successfully limiting index portfolio turnover within a volatile environment," he said.

The changes take effect from the close of trade March 20, 2008.