the way i read it on afr, said, this would reducing the number of fund managers as they only follow the index market movement. Although, other argues that due to the removal effect, this lower the price than it meant to be, so traders kinda of like it as they know there are at least 2 big buyers on the market and price will pick up.
Removal from this index doesn't mean a delisting or removal from asx though. ASX: PGH still there.
It just means a removal from top 500 companies by replacing with another one. When PGH gaining money, they will rebalance it, provided it hasn't been compulsory acquired by RG.
It just the odd is that, lack of index-tracked fund managers willing to buy it as some only followed the index market. Although, they can choose to slowly retreat instead of rushing to sell as the effect of removal won't kick in until March rebalancing. By choosing to slowly retreat from these fund managers, hopefully the market or other buyers having a chance to pick up instead of tank the price hardcore.
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)