AZZ 0.00% $7.50 antares energy limited

azz dumped from all ordinaries, page-8

  1. 6,389 Posts.
    Well probably not much in AZZ's case as many institutions that hold shares based on an index have probably already sold.

    It means that any additional funds that come into the market that get allocated based on the stocks on an index won't automatically be put into AZZ.

    It also means that buying and selling pressure based on automatic 'black box' trading (where the computer bases the buys and sells on some mathmatical formula) will be absent.

    IMO that is a good thing as AZZ with not get hit during market sell-offs or be bought up on market jumps - it'll trade more on 'fundamentals'.

    When a company gets included or excluded from an index the big holders that need to adjust their holdings buy or sell and it puts un-natural pressure on the share price for a short period of time...

    News Corp is a good example of what can happen and you can go back and read the stories about what happened to it when the adjustments needed to be made.....
 
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Currently unlisted public company.

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