Jan. 11 (BusinessDesk) - The Fonterra Shareholders' Fund, whose units soared 26 percent on their first day of trading, will tip wool carpetmaker Cavalier Corp out of the benchmark NZX 50 index this month.
The Fonterra fund, which has surged by a third from their $5.50 offer price, has met the ranking and liquidity requirements and will join the benchmark index on Jan. 21, the stock exchange operator said in a statement after the close of business.
Cavalier, which has shed 23 percent over the past 12 months, will leave the top 50 being the lowest ranked stock.
Units in the Fonterra fund, which give investors a slice of Fonterra Cooperative Group's dividend stream, rose 0.8 percent to $7.31 in trading today, while Cavalier shares gained 1.8 percent to $1.71.
The reshuffle comes after retirement village operators and developers Metlifecare and Summerset Group joined the top 50 at the expense of Goodman Fielder and New Zealand Refining in the December quarterly review.