NZX index changes: Who's in and who's out?

Index-tracking funhds will have until December 21 to make changes to their portfolio if they wish.

The re-weighing of the S&P/NZX indices will be revealed Friday and the bets are on that honey product maker Comvita will be out and movie software company Vista Group will be back in the NZX50.

Falling out of the index will be the latest blow for Comvita which has suffered from a poor honey harvest and a takeover bid which never came to fruition this year.

Vista has been in the index before but fell out due to lack of liquidity. But analysts are picking it will meet the threshold again this time round.

Vista has a market capitalisation of around $580 million which means not only will it go back into the index but it will go in at around number 39 or 40.

Mark Brown, chief investment officer at Devon Funds Management, said it had already seen a number of brokers begin to cover Vista in anticipation of its inclusion.

And with Trade Me set to leave the market - provided its takeover goes ahead - Vista could be one of the largest profitable technology stocks left on the NZX.

Still Vista won't be anywhere near Trade Me's size which currently sits around the 10th largest listed company.

Brown says Comvita's fall out of the index is "unfortunate" but Trade Me's pending departure could open up a spot for the honey company to come back into the index again.

Ironically if Comvita goes the smallest stock left in the NZX50 will be the stock exchange operator itself the NZX.

Index tracking funds and other investors which hug the benchmark will have until December 21 to make the changes to their portfolios which could see Vista shares enjoying a pre-Christmas bump.

Vista shares are up 32 per cent in the last year and last traded at $3.50.