SAR 0.00% $4.69 saracen mineral holdings limited

asx 200

  1. 1,157 Posts.
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    Could I have peoples thoughts on Wink's comment on Feb 6:

    "Yeah we are going ok today doc, but there is a problem on the horizon, I read we are going to drop out of the ASX200 at the start of march which could result in 10% of stock being dumped"

    Extract from http://www.smh.com.au/business/markets-live/markets-live-banks-miners-lead-rebound-20130206-2dxa9.html

    "With a rebalance of the main sharemarket indices due from March 1, to take effect from mid-March, UBS thinks you need to trade a month ahead of the change to maximise the benefit from inclusion or to avoid being caught up in the wash from any exclusions.

    For the ASX100 index, it reckons both Fairfax and Arrium will be removed, while tipping fund managers Perpetual and IOOF Holdings to be included.

    In the ASX 200, it reckons Australian Infrastructure Fund, Gryphon Minerals, Bathurst Resources and Saracen Minerals will be excluded.

    UBS believes that around 10 per cent of the shares in Gryphon, Bathurst and Saracen could be sold as a result."


    Questions that I have:
    "Around 10% of the shares....could be sold". Does SOLD mean that there will be a decrease in the share price? How does UBS come up with "10%"? Who actually would be doping the selling - fund managers?

    Is being outside of the ASX 200 a negative? It doesn't change the companies production numbers or profit margin?

    If the share price suddenly jumped up to, say, $0.65, would this keep them in the ASX 200?

    I hope some light can be shed on the above.

    Regards,

    Randy.
 
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