Here are 6 stocks that got promoted in the ASX quarterly rebalance, and 6 that got demoted

On Monday March 24, the ASX quarterly rebalance will be effective. Stocks will be promoted into new indices, while others will be demoted. This will trigger mandatory institutional buying and selling of such companies, something that can cause an impact on the share price. They also garner attention from investors who may buy the stock in the future.

You can find a full list right here, but we thought we’d highlight a handful of the most noteable stocks to get a promotion or demotion.

 

6 stocks that got promoted in the ASX quarterly rebalance

 

Pro Medicus (ASX:PME) into the ASX 50

Pro Medicus has never put a foot wrong since it bought the Visage radiology software in 2009. Visage can integrate into any brand or type of imaging hardware, helping it to transfer imaging data to a specific office or computer, to subsequently view and analyse the images.

It has won for several reasons including that is is relatively well established in the US market, has high profit margins, long-term stable leadership and future growth potential. Oh, and did we mention it never disappoints on its results? In its most recent results (1H25), it made $97.2m revenue (up 32%) and a profit of $51.7m (up 43%). And it keeps winning new, long-term contracts with major health providers, the most recent of which was an A$40m 7-year contract with LucidHealth.

 

Life360 (ASX:360) into the ASX 100

Life360 has been listed for 6 years, listing at a time it was too small to be on the NASDAQ and would’ve gotten lost. Now it is the right size and has listed on the NASDAQ, but retains its local listing and is about to graduate in the top 100 stocks on the bourse.

Life360 operates an app that allows parents and children to stay connected. The app’s original premise was for parents to see the location where their children are, an idea that remains its primary capability. . The company’s 2021 acquisition of fellow Silicon Valley tech company Tile diversified the company into tracking things in addition to people. It reached US$371m revenue in CY24 and is profitable on an ‘adjusted EBITDA’ basis.

 

Capstone Copper (ASX:CSC) into the ASX 200

Capstone made it into the ASX 300 6 months ago, which was less than a year after it first listed, and will be in the ASX 200 in a few days. So, we thought it was worth mentioning this strong performing copper miner again.

A non-gold miner performing well? Yes, you read it right. The TSX-listed company listed on the ASX as a secondary listing in February 2024. Capstone owns and operates:

• • The Pinto Valley copper mine located in Arizona, USA,
  • The Cozamin copper-silver mine located in Zacatecas, Mexico,
  • The Mantos Blancos copper-silver mine located in the Antofagasta region, Chile,
  • 70% of the Mantoverde copper-gold mine, located in the Atacama region of Chile.

Amonst exploration assets, Capstone owns the fully permitted Santo Domingo copper-iron-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas. Copper hasn’t performed as well as gold this year, but arguably has the best outlook of any commodity because of the demand/supply imbalance that is forthcoming.

 

Botanix (ASX:BOT) into the ASX 300

Poor biotech investors. Just as interest rates have begun to decline, they saw another setback with uncertainty as to if biotechs will be hit by Trump’s tariffs and/or to see if Elon Musk gutting the FDA will offset any benefit from lower corporate taxes.

Botanix, which is capped at $750m, has Sofdra – a gel aimed to treat primary axillary hyperhidrosis (excessive sweating). 2023 was a tough year because the FDA knocked it back, not because the data didn’t show it worked but they weren’t sure the instructions the company provided for its patients were capable of being followed.

Shares rallied throughout the first half of CY24 in hope that approval was forthcoming, and investors were ultimately right. The green light came in mid-June 2024, making Sofdra the first and only new chemical entity approved for its indication. 2025 will be the year that it launches and this occured in February. The company has not given any sales data yet, but it has been estimated that there are 10 million people in the US for whom Sofdra could make a big difference.

 

Intelligent Monitoring (ASX:IMB) into the All Ords 

There’s been a lot of talk that investors on the ASX don’t have the patience to see good small companies become big ones – unless they give running commentaries on their operations every week – and this is why the ASX is losing companies. IMB is a case study that companies can just go about its ordinary business, win in its field, and be rewarded.

Two years ago, IMB was the 3rd largest company in the security industry, and now it is the largest. ensures the safety and protection of over 200,000 businesses, homes, and individuals, round the clock.

The security industry is a highly defensive industry to begin with. That is to say, the industry tends to be immune to macroeconomic conditions. Moreover, the security monitoring industry in Australasia is highly fragmented with a large number of small players. This situation works in favour of larger players such as Intelligent Monitoring Group which can use its strong market and financial position for further consolidation. We see potential for further growth through the adoption of DIY security solutions, which IMB specialises in, and the growth in the use of AI in security solutions.

 

Step One (ASX:STP) into the All Ords

Most Australians would know about this company – you’ve probably seen its YouTube ads.

 

 

Investors rushed to ‘get some’ of its shares when it listed in 2021, only for shares to crash as inflation rose. Investors just couldn’t entertain the idea that people would pay $29 for one pair of underwear when they could get 7 for $15. Turns out, they were wrong. The company is now making nearly $100m in annualised revenue, has a 20%+ EBITDA margin and is distributing 100% of its earnings as dividends with a cash balance of $43.8m.

 

6 that got demoted in the ASX quarterly rebalance

 

Star Entertainment (ASX:SGR) from ASX 200

Not surprising, but let’s put Star here anyway. As of mid-March 2025, it is in suspension because it has not lodged its half-yearly accounts. Why has it not lodged them yet? Because it is so short of cash that auditors cannot verify that it can continue as a going concern. How did it get there? It’s a long story. As a consequence, it is suspension, trying to save itself with a short-term funding deal. It appears it will lose control of the Brisbane casino as a result of any deal – that seems all but certain to be a condition of any financier, that it can have it for itself.

 

Johns Lyng (ASX:JLG) from the ASX 200

This restoration services company had a few boom years earlier this decade when a couple of stormy summers led to a tonne of work for the company, but also speculation that it would gain from future disasters too. Unfortunately, the company has had a string of problems that has led to it falling out of favour with investors.

Its profit in 1H25 fell by a third to $20.8m and its revenue fell by 6% to $610.6m not long after it told investors that FY24 would be an inflection point for future growth. JLG also took a reputation hit when it was named in an ABC investigation into the strata industry.

 

NIB (ASX:NHF) from ASX 100

When a CEO who has served for roughly 2 decades departs, it takes a while for investors to adjust to a new change of leadership. But it doesn’t help when you’re in an industry that is facing margin pressure, scrutiny by governments over the cost of living as well as from its customers. As well as when your half-yearly profit dipped from $103.9m to $82.9m.

 

Mineral Resources (ASX:MIN) from ASX 50

So many stocks with exposure to lithium were demoted out of indices long before Min Res. This company avoided it because the company was diversified with a mining services business as well as gold and iron ore mines.

But the company has had several problems including weak iron ore prices, concern that Mineral Resources won’t be able to access US critical minerals subsidies, a multi-billion dollar debt burden that has led to Fitch downgrading it and warning of risks to its balance sheet, as well as investigations into founder Chris Ellison into allegations of tax evasion and other corporate wrongdoing. Shares have lost over 70% in less than a year.

 

Imugene (ASX:IMU) from ASX 300

Perhaps investors realise that this company isn’t as advanced as they would’ve thought – only starting a Phase 1b trial this January. Or maybe it has just fallen victim to the biotech sell off. Whichever may be the case (or if both are), it is a long way from the $2bn valuation it reached in 2021. The company has CAR-T therapies, promising technologies to fight cancer but are at early stages. Imugene has multiple assets, but it will be a while before we see any get to market.

 

KMD Brands (ASX:KMD) from All Ords

Many retailers that entered sales slumps as inflation rose in 2022 have recovered…but not this one. This one owns the Rip Curl and Kathmandu brands and has fallen from $1.50 to $0.33 since early 2022 off the back of multiple negative trading updates. The company is about to welcome a new CEO in Brent Scrimshaw, an existing board member, CEO of Enero and a former Nike executive.

 

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