Big news for Aurizon Holdings Ltd (ASX: AZJ) shares dropped over the weekend.
Following its March quarterly review, S&P Dow Jones Indices announced the company is about to be booted from the S&P/ASX 50 Index (ASX: XFL).
Aurizon will be waving goodbye to the exclusive group of some of the ASX’s biggest and most renowned shares on 21 March.
Let’s take a closer look at the upcoming change facing the rail freight operator and what it could mean for its shares.
Aurizon to be removed from the ASX 50
The Aurizon share price is slipping on Monday as the market reacts to news that the company is to be dropped from the ASX 50.
At the time of writing, the Aurizon share price is $3.54. That’s 1.9% lower than it was as of Friday’s close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red on Monday. It is currently down around 1.1%.
The company’s impending removal from one of the ASX’s most exclusive cliques was announced on Friday evening.
It means trading of the company’s stock might soon increase as funds tracking the ASX 50 Index sell out Aurizon in favour of its replacement – BlueScope Steel Limited (ASX: BSL).
Thus, eagle-eyed market watchers might see funds buying into BlueScope to maintain their mirroring of the index.
Additionally, fund managers mandated to only trade in ASX 50 shares might soon be forced out of Aurizon and have to consider BlueScope.
Aurizon share price snapshot
2022 has been a rollercoaster for the Aurizon share price.
Right now, it’s 1% lower than it was at the start of this year. It has also fallen 2% since this time last year.
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