Interesting point here. 15% of BHP PLC shareholders are index funds. Whereas 20% of BHP ltd (ASX listing) is index funds. So what should happen?
1. All index funds relating to the FTSE will sell by default, this won’t be 15% as some would be MSCI world and various other index funds holding.
2. A net benefit circa 5% of buying should occur on the ASX to cater for the 20%. Yes some would be MSCI would as per above. However it’s likely ASX all ords specific funds outweighs FTSE passive funds given the 15%/20% mix.
3. In theory the rebalance should occur as the unification deal occurs so prepare for a huge amount of cross trading as FTSE index funds transfer to ASX index funds. Then net buying will occur for that slack of 5% or so I was speaking of.
Hence this may cause BHPs share price to rise with purely index buying.
Ann: Presentation on Unification of BHP's DLC structure, page-2
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Last
$45.08 |
Change
-0.070(0.16%) |
Mkt cap ! $228.7B | |||
| Open | High | Low | Value | Volume |
| $45.15 | $45.47 | $45.08 | $231.2M | 5.119M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 3658 | $45.07 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $45.08 | 3638 | 1 |
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| Last trade - 16.10pm 28/05/2024 (20 minute delay) ? |
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Last
$45.19 |
Change
-0.070 ( 0.01 %) |
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| Open | High | Low | Volume | ||
| $45.15 | $45.47 | $45.09 | 515656 | ||
| Last updated 15.59pm 28/05/2024 ? | |||||
| BHP (ASX) Chart |