Deletions are expected to far outweigh additions, when the S&P/TSX Composite Index is rebalanced in December, says Scotia Capital analyst Darwin McGrath.
Mr. McGrath told clients that Ritchie Bros Auctioneers Ltd. (RBA) is the lone candidate poised to jump onto the country main Index, while more than 20 companies are expected to be kicked out.
'We estimate 22 names have drifted below the weight criteria threshold for inclusion and as such we expect them to be deleted from the Composite Index," the analyst said in a note, listing the following names:
Mercator Minerals Ltd. (MRCMF.PK), Anvil Mining Ltd. (AVMNF.PK), Norbord Inc. (NBDFF.PK), UEX Corp. (UEXCF.PK), Bankers Pete Ltd. [BNK.TO], Compton Petroleum Corp. (CMZ), Golden Star Resources Ltd. (GSS), Jaguar Mining Inc. (JAG), Dundee REIT [D-UN.TO], Eastern Platinum Ltd. (ELRFF.PK), Algonquin Power Income Fund (AGQNF.PK), ACE Aviation Holdings Inc. (ACEAF.PK), Martinrea International Inc. (MRETF.PK), Northgate Minerals Corp. (NXG), Timminco Ltd. (TIMNF.PK), Flint Energy Services Ltd. (FESVF.PK), GMP Capital Trust (GMCPF.PK), Quadra Mining Ltd. (QADMF.PK), Extendicare REIT (EXETF.PK), European Goldfields Ltd. (EGFDF.PK), Great Canadian Gaming Corp. (GCGMF.PK), FNX Mining Company Inc. (FNXMF.PK).
Mr. McGrath is also tracking candidates to be added or deleted from the S&P/TSX 60. His top candidate for inclusion is Metro Inc. (MTRAF.PK) and expected removals include BCE Inc. (BCE), Lundin Mining Corp. (LMC) on takeover bids, and Nortel Networks (NT), Uranium One Inc. (SXRZF.PK), Nova Chemicals Corp. (NCX), Inmet Mining Corp. (IEMMF.PK), MDS Inc. (MDZ) and First Quantum Minerals Ltd. (FQVLF.PK) due to shrinking market caps.