index in dec ? Tatt’s Index Inclusion To Come LaterSeptember 05...

index in dec ? Tatt’s Index Inclusion To Come Later
September 05 2005

Standard & Poors has announced its September quarterly additions and deletions to its indices. As expected by Macquarie, Tattersall’s was not included in this round.

Though Tatt’s technically satisfies all measures for inclusion, S&P indicated at the time of listing it would monitor the stock’s liquidity for at least six months before making a decision, Macquarie recalls. This cautious approach was due largely to the minimal amount of stock allocated to institutions.

Macquarie believes Tatt’s will be included in the December round (Dec 2) provided a median daily turnover of $3m continues to be achieved. When this occurs the analysts see an index-related squeeze providing support for the stock.

Macquarie has calculated its initial expected weightings for each index based on a $3.15 stock price. These are
0.29% in the S&P/ASX 100, 0.27% in the 200 and 0.26% in the 300. The analysts believe these weightings could raise demand for 33 million shares. ...........