On September 6th, it was announced that GDI would be removed from the ASX 300 index effective September 23rd. Prior to this announcement, index fund managers Vanguard and BlackRock collectively held approximately 81.7 million GDI shares, based on their most recent market disclosures. As a result of GDI's removal from the index, these managers needed to divest their holdings.
Between the announcement and September 20th, approximately 87.5 million GDI shares were sold in total, with a significant spike of 47.6 million shares traded on September 20th alone. The question is, are the index fund managers done? You have to figure some active fund managers whose mandates restrict them from owning only ASX300 shares must also sell their GDI holdings, which would account for a percentage of the 87.5m shares sold in the last two weeks.
We’ll soon find out.
GDI Price at posting:
62.5¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)