Sure, but KPG isn't a larger proportion of any index now than it was a month ago, so why would "index rebalancing" increase demand.
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"Index rebalancing" may involve more than just adjusting a portfolio to index proportionality although I would have thought that would be by far the major thing - as passive funds are known to exacerbate trends rather than work against them. It may have something to do with index rebalancing but its not obvious to me how.
if anything I thought it would have been the opposite effect - portfolio rebalancing reducing the size of KPG as it has dropped in value vs the broader market recently. hard to see a 4.5% upswing in a single days trade being caused by rebalancing.
actually think it has more to do with the clear signaling by multiple government ministers this week that lockdowns are not intended to be used in future as long as vaccination rate continues to progress as it has been. With over 73% of eligible with at least a single dose (and another 6% booked to receive one) we are in the final period of region-wide lockdowns as a needed tool.
Every third Friday of every third month, (March, June, Sept and December) the NZX50 is "rebalanced" in the closing 15 minute match process.
The exact reasons why some shares are bought up and others sold down and the volumes and reasons involved are not know to this old mutt but the fact remains this rebalancing is a known event. If you look carefully at this image you will see that ostensibly almost all the volume was done at the close of tradeAttachment 12977
A clever investor looks to try and take advantage of these scheduled rebalancing events and tries to milk any price anomalies resulting from them.
And the three large off-market trades 'after the close' were made at the closing price, they didn't alter the share price up or down.
Ya think those in the know wouldn't front run the anticipated demand at close ? Why wouldn't they ! Negotiated deals after the market closes are a normal part of brokers matching up demand and supply. The volume at close speaks for itself.
there may be some selling coming in the AUS and NZ property markets.
Think everyone who follow global markets know the high yield market in China has been the birdie in the coal mine for a few years now.
Birdie coming home to "roast" (hot little tree branch on fire) now....
Chinese housing giant unable to pay debts and could wreck global economy - NZ Herald
Boom! KPG confirms it is moving ahead with Build-to-rent developments at Sylvia Park & LynnMall. First up is 295 apartments at Sylvia park, starting construction before the end of this year. Goal for 1,200 apartments total at Sylvia Park.
investor call at 10.30am.
https://www.nzx.com/announcements/379455