What do you think the MSCI uptake means for trading tomorrow? Will index trackers continue to buy, and can we predict how long they will be buying for?
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What do you think the MSCI uptake means for trading tomorrow? Will index trackers continue to buy, and can we predict how long they will be buying for?
I am no authority but I think some buying would go on for weeks.All the funds that are affected are not going to buy on day one.They are a bunch of bureaucrats and will need to go thru the process.They then may even buy in Aussy cos they haven't got a broker here.Not that bad but nothing is instant in that part of the world.IMHO....
From what I can ascertain from msci.com, changes to the MCSI indexes were announced in the last 24 hours. There may be other changes, but from what I can tell, it appears XRO was added to the MSCI global Standard Index and removed from the MCSI Global Small Cap Index.
See http://www.msci.com/eqb/gimi/stdinde...PublicList.pdf and http://www.msci.com/eqb/gimi/smallca...PublicList.pdf for full details and please DYOR.
The header on those documents states the index changes will take place at the close of May 30.
Hope that helps. Could be an interesting couple of weeks in terms of volume and price volatility. The last index inclusion I was aware of in April coincided with a solid rise in the SP, however once the buying support dried up the it coincided with the NASDAQ spitting the dummy and XRO fell dramatically. From a long term holder perspective any SP rise as a result of index changes makes me uneasy. I'd far rather see the SP rise on the back of growth and execution.
Not prepared to speculate on what might happen to the SP over the next 2 weeks or beyond.
I know you are just playing silly winner69.
The more credible index makes XRO a more credible investment.
Which means it is a safer bet for institutions under a duty to invest in a prudent manner.
Which means more exposure to the stock from the "big boys."
Which means BEAST MODE.
Not disputing anything .... some funds will need to sell and some will need to buy ..... depending on XRO weighting in each
Yes the new index should make XRO a 'more credible' investment over time but that is different from the buying and selling until funds get their weighting right over the next few days.
OK lets be silly together then and chant BEAST MODE - I am all for that