Myer’s woes have led to the struggling department store being removed from the Australian share market’s benchmark ASX200 index.
Myer, whose shares have shed two thirds of their value in the past year amid sluggish sales and a series of profit warnings, has been dropped from the index of the top companies on the Australian Securities Exchange along with cattle producer Australian Agricultural Company and HT&E, the renamed APN News and Media.
The demotion is likely to put even more pressure on Myer shares because some fund managers track the index and are therefore likely to jettison the stock.
At 1047 AEDT on Friday, the shares were 2.0 cents, or 4.4 per cent, lower at 43.5 cents..
Myer floated at $4.10 in 2009 but never again reached that level.
The move may also provide more ammunition to Myer’s leading shareholder, retail veteran Solomon Lew, who is agitating for a complete overhaul of the department store chain’s leadership team.
Chief executive Richard Umbers resigned last month and Myer is set to report its first-half results on March 21, having already cut its guidance and flagged the need for more writedowns.
Infant formula supplier Bellamy’s, cloud accounting firm Xero, staff management company Smartgroup and miner Ausdrill will be included in the ASX200 index in a rebalance that takes effect from March 19.
Xero’s rise also gets it a spot on the even more selective ASX100 index, where it and Cleanaway Waste Management replace troubled internet provider Vocus and Fairfax Media, which has been diminished by the spin off and float of its Domain property business.