It’s that time of year again, where the S&P/ASX Indices are given a refresh as part of a quarterly review. In what is a fresh look for the ASX, there is a distinctly ‘green’ feel to this latest round of changes, with a host of battery metals stocks making it into the major indices. 

That trend is not only representative of the broader action we’ve seen across the industry, with these stocks soaring in value throughout 2021, but it has been evident via the SelfWealth share trading platform, where trading values among leading shares in this segment are up more than five-fold.

Let’s take a look at the changes, which take effect prior trading on December 20, 2021.

Additions to the major indices

Orocobre, now renamed Allkem (ASX: AKE), joins the S&P/ASX 100, while Pilbara Minerals (ASX: PLS) joined in late November following the emergence of a vacant spot. The lithium duo have had a terrific year thus far, with demand in this sector driving a significant increase in trading volumes. 

The same theme has also had an influence on the S&P/ASX 200, where changes are more widespread. Liontown Resources (ASX: LTR) and Nonovix (ASX: NVX) both make the cut for the benchmark index amid investors’ growing appetite for stocks that could power the EV revolution.

Also joining the fold are Paladin Energy (ASX: PDN), with 2021 proving somewhat a resurgence for uranium stocks, as well as the likes of Imugene (ASX: IMU) and Event Hospitality and Entertainment (ASX: EVT). Meanwhile, Sandfire Resources (ASX: SFR) was added late last month.

Life360 (ASX: 360) has been added to the S&P/ASX 100 following the removal of Oil Search.

Removals from the major indices

The highest-profile casualty from this latest reshuffle is Link Administration (ASX: LNK), which has been dumped from the S&P/ASX 100. The superannuation services player continues to grapple with a takeover bid from Carlyle Group.

Other departees from the S&P/ASX 100 include Oil Search (ASX: OPH), following its merger with Santos (ASX: STO), and Spark Infrastructure (ASX: SKI), with the utilities firm the subject of a takeover by a consortium of investors led by private equity giant Kohlberg Kravis Roberts and the Ontario Teachers’ pension fund. 

Elsewhere, several former market darlings have been turfed from the benchmark index, with Kogan (ASX: KGN), Nearmap (ASX: NEA) and Redbubble (ASX: RBL) no longer in the S&P/ASX 200. The trio have suffered setbacks this year, largely stemming from slowing growth. In the case of Kogan, it has also faced inventory issues, while Nearmap and Redbubble have been the subject of legal concerns.

The trio are also among the most-shorted ASX stocks, a trait they share with the two other stocks being removed from the S&P/ASX 200 in Monadelphous (ASX: MND) and Omni Bridgeway (ASX: OBL), which have been stung by labour shortages and an adverse court ruling respectively.