All you need to know about ASX 200 September 2022 quarterly Rebalance

Key Takeaways:

1. On 02 September 2022, S&P Dow Jones Indices changed the ASX 200 index, effective before the trading session on 19 September 2022.

2. Players from the material space dominated the index.

3. ASX 200 September 2022 quarterly rebalance was driven by the performance of ASX-listed players in August.

On 02 September 2022, S&P Dow Jones Indices made changes in S&P/ASX 200 index, effective before the opening of the trading session on 19 September 2022.

Every quarter S&P Dow Jones Indices does a quarterly rebalance on the third Friday on the market close of March, June, September, and December. ASX rebalancing is done quarterly to ensure adequate market capitalisation and liquidity. Rebalancing is significant as it involves adding and removing securities or changing the weights of existing index constituents.

In September 2022 quarterly rebalance, the resources sector dominated the ASX 200 index. Players like Charter Hall Social Infrastructure REIT (ASX: CQE), Johns Lyng Group Limited (ASX: JLG), and Lovisa Holdings Limited (ASX: LOV) are some of the players in the REIT and Retail space respectively who were able to make it to ASX 200. On the other hand, major players like Life360 Inc. (ASX:360), AVZ Minerals Limited (ASX: AVZ), City Chic Collective Limited (ASX: CCX), Clinuvel Pharmaceuticals Limited (ASX: CUV), EML Payments Limited (ASX: EML), Janus Henderson Group PLC (ASX: JHG), Pointsbet Holdings Limited (ASX: PBH) and ZIP Co Limited (ASX: ZIP) were removed from the index.

The addition and removal of most companies from the index were driven mainly by the ASX-listed players' results announced in August 2022.

In the last 30 days, ASX 200 index delivered a negative growth of 0.73%. However, in the last 5 days, the index has shown an improvement of 0.96%, driven by Wall Street performance. In contrast, S&P 500 delivered a negative growth of 1.52% in the last 30 days and 3.65% in the last 5 days. On 12 September 2022, ASX 200 index inched over 1% and settled at 6,963.70.

On that note, let's look at the recent updates of the players included in ASX 200.

Capricorn Metals Limited (ASX: CMM)

Capricorn Metals Limited released its June 2022 quarterly results on 27 July 2022. The Company reported a record quarterly gold production of 32,018 ounces. Annual gold production of 118,432 ounces at the top end of FY2022 guidance of 110,000 to 120,000 ounces and all-in sustaining cost AISC of AU$1,112 per ounce for 9 months ended 30 June 2022 at the lower end of the guidance range of AU$1,100 - AU$1,200/oz.

The Company expects its FY2022 guidance of 115,000 - 125,000 ounces at an AISC of AU$1,160 - AU$1,260 per ounce.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT reported AU$184.4 million growth in statutory profit in FY2022. Operating earnings increased 8.4% to AU$62.9 million. It announced a distribution of AU17.2 cents, up 9.6%. Gross assets increased 35% during the period to AU$2.1 billion.

Johns Lyng Group Limited (ASX: JLG)

Johns Lyng Group recorded another year of significant growth and a record financial performance. Sales revenue increased 57.5% to AU$895 million, and EBITDA increased 58.9% to AU$83.6 million from FY2021.

The result during FY2022 was driven by a strong performance from the Group's core Insurance Building and Restoration Services division. It contributed business as usual Revenue of AU$586.5 million, up 63.8% on FY2021.

Karoon Energy Limited (ASX: KAR)

Karoon Energy announced an underlying net profit after tax of US$89.6 million, compared to US$21.4 million in FY2021, reflecting a full year of Baúna production, high levels of operational uptime, disciplined cost control, and strong realised oil prices.

Oil production from Baúna increased from 3.14 million barrels (MMbbl) in FY2021 to 4.64 MMbbl in FY2022. Oil revenue increased from US$170.8 million in FY2021 to US$385.1 million. As at 30 June 2022, the Company had a strong financial position with cash and cash equivalent of US$157.7 million, US$30 million of drawn debt, and an outstanding undrawn debt facility of US$180 million.

Lovisa Holdings Limited (ASX: LOV)

Lovisa Holdings announced robust FY2022 results and reported a 59.3% growth in revenue through FY2022. Comparable store sales increased 19.9% on FY2021. On a 52-week basis, EBIT increased 81.4% to AU$77.5 million. Net profit increased 116.3% to AU$59.9 million.

It increased 30% franked final dividend of AU 37.0 cents per share.

Smartgroup Corporation Limited (ASX: SIQ)

Smartgroup Corporation announced a 4% increase in revenue to AU$113.6 million. Operating EBITDA for the period of AU$49.4 million was in line with pcp. NPAT increased 16% to AU$30.9 million.

During 1H 2022, the Company progressed through the build phase of several key digital assets. In late July 2022, the new Smartsalary website was launched. Phase 1 of the Vehicle Sales Portal will be launched later in 2022.

Spark New Zealand Limited (ASX: SPK)

Spark New Zealand Limited delivered a robust FY2022 result. Disciplined strategy execution supported FY2022 results. The Company outperformed the market in mobile service revenue growth. Revenue improved 3.5% to AU$3,720 million, driven by outperformance in mobile and wins in Spark Health.

SPK announced a total FY2022 dividend of 25 cents per share, 100% imputed.

Sayona Mining Limited (ASX: SYA)

On 04 August 2022, Sayona Mining further advanced its planned restart of spodumene production at the North American Lithium (NAL) operation in Québec. Sayona is on track to restart production in Q1 2023. It became the only local supplier in North America after having committed ~AU$100 million to the restart.

In June 2022 quarter, Sayona and Piedmont approved NAL restart, backed by a successful AU$190 million placement to global institutional, professional, and sophisticated investors. Its new lithium discoveries show potential for increased resources at Moblan Lithium Project, improving the emerging northern lithium hub.

In WA, the Company identified lithium targets at its Mt Edon prospect. 

Stock Information as on 12/09/2022:

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