If MSB is to be removed from S&P ASX 200...., page-255

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travelightor

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02/09/16

09:11

Post #: 18877521
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Originally posted by travelightor ↑

As we all know, MSB is currently included in the S&P ASX 200 index. Being included in a major index such as this has its benefits, namely, all of the index funds will have to buy the stock so that the funds' performance can mimic the real performance of the index.

This index is rebalanced every quarter, meaning companies near the bottom of the list whose market capitalisations have fallen significantly to be below the threshold are regularly replaced by new market darlings whose market cap has gone above the threshold.

When this happens, there may be some degree of selling pressure on the stock as various index funds offload their shares in the discarded companies.

I am seriously concerned that MSB may be a candidate to be booted off the S&P ASX 200 index.

These are my reasons:

- As of the close of 15 July 2016, the smallest market cap of the company in the list is $383 million, and MSB current market cap is only $421 million, very close to the bottom end. In fact, out of 200 companies in the list, there are only 3 companies whose market cap are smaller than MSB.

- Of the 200 companies in the list, MSB has the lowest 12 month return of -72.17%. The second lowest in the list has a return of 'only' -45.30%.

---

I hope some holders may find the the above information useful.

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The possibility of MSB being removed from S&P ASX 200 index, has eventually happened.

After almost 5.5 years since MSB was first included in S&P ASX 200 index on 18/04/2011, this morning it has been removed.

What's the effect of this on the share price is anybody's guess.

For a company that is in dire need of raising finance, this latest development is the last thing that MSB needs.

MSB Price at posting: $1.36 Sentiment: Sell Disclosure: Not Held
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(20min delay)
Last $2.28		Change -0.030(1.30%)		Mkt cap ! $2.918B

Open	High	Low	Value	Volume
$2.32	$2.39	$2.24	$13.10M	5.680M

Buyers (Bids)

No.	Vol.	Price($)
8	44474	$2.27

Sellers (Offers)

Price($)	Vol.	No.
$2.29	30176	3

View Market Depth

No.	Vol.	Price($)
7	44030	2.270
4	31511	2.260
4	12725	2.250
5	28464	2.240
4	30100	2.230

Price($)	Vol.	No.
2.290	30176	3
2.300	15322	3
2.310	12000	2
2.320	21980	6
2.330	10410	2

Last trade - 16.17pm 22/07/2025 (20 minute delay)

MSB (ASX) Chart

If MSB is to be removed from S&P ASX 200...., page-255

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If MSB is to be removed from S&P ASX 200...., page-255

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