NET included in ASX All Tech Index (NEW)

In reference to the announcement made by NET via twitter indicating that NET is 1 out of 46 initial tech companies to be listed as part of the new ASX All Tech Index (XTX) commence next week.

If this is true, now its all explained the 60+++ m shares acquisition for the past week. Also this means we will see more accumulation over the next two weeks for managed fund/index fund to get NET inlcuded in their portfolio.

This is a good and bad news.

When a company's stock is added to the specific index, the mutual funds will then purchase the stock to add it to their investment portfolio. Those purchases will add to the demand of the stock and cause the price to rise. The reverse happens when a stock is removed from the index.

What happens to a companies stock when they are added to the S&P ...

Enjoy the wild ride for the next few months until the growth rate CAGR is settle to a known number - then index funds would be able to generate a valuation that they willing to get to