Fortescue, Equinox winners in S&P reshuffle7th March 2008, 11:30...

Fortescue, Equinox winners in S&P reshuffle
7th March 2008, 11:30 WST

WA companies have come up trumps in Standard & Poor’s latest market indices reshuffle, after some major names were dropped.

The market indices, including the often-quoted S&P/ASX 200, recognise the biggest companies by market capitalisation trading on the Australian Securities Exchange.

Andrew Forrest’s iron ore heavyweight Fortescue Metals Group will join the S&P/ASX Top 50 index, along with builder Leighton Holdings and engineering services provider WorleyParsons.

They will replace Toll Holdings spin-off Asciano, gaming machine maker Aristocrat Leisure and the troubled Centro Properties Group.

Fortescue and Lihir Gold will also join the S&P/ASX All Australian 50.

West Perth-based minerals explorer Equinox Minerals will join the S&P/ASX 200, while Atlas Iron, Aspen Group, Ausdrill, Avoca Resources, Copperco, Carnarvon Petroleum Dominion Mining, Imdex, Nido Petroleum and NRW Holdings will all join the Top 300 index.

Swiss mining giant Xstrata is rumoured to be considering a takeover bid for Equinox, after Canadian investor First Quantum Minerals acquired a 17 per cent stake in the company.

In the Top 100, NSW-based engineer Transfield Services will replace Sigma Pharmaceuticals.

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

Simon Karaban, associate director at Standard & Poor’s 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.

ANDREW HOBBS AND AAP