BlueScope steeling itself for slide out of top 50 stocks
BLUESCOPE Steel's woes have pushed it out of the top 50 listed companies, making space in the index for a mining company propelled by soaring zircon prices.
BLUESCOPE Steel's woes have pushed it out of the top 50 listed companies, making space in the index for a mining company propelled by soaring zircon prices.Steel maker BlueScope's share price slipped to a historical low of 74? yesterday, just weeks after it blamed the strong Australian dollar and low steel prices for a $1 billion loss.The management announced a restructure that will close two factories and lay off 1000 staff.Mineral sands miner Iluka Resources entered the S&P/ASX 50 because its revenue has been boosted by China's demand for zircon and rutile.Standard & Poor's index rebalancing sees two new companies enter the benchmark 200 Acrux and Qube Logistics and two depart, Infigen Energy and Hills Holdings.There were no changes in the top 20 companies but 16 swaps in the S&P/ASX 300.The new weightings take effect after the market closes on September 16.Qube has jumped straight into the 200 from outside the 300. It is a logistics company chaired by former Patrick Corporation managing director Chris Corrigan, who was behind reformation of unionised dockyards in 1998. It listed as KFM Diversified Infrastructure and Logistics Fund in 2007 and has gradually acquired a complete logistics supply-chain.Qube's market capitalisation is now $1.15 billion up from $200 million three years ago, according to Baillieu industrials analyst Simon Dumaresq.Acrux invests in pharmaceutical businesses and posted a net profit of $57 million last financial year.Fund managers said S&P's rebalancing has little effect on equity holdings.