DYOR but I reckon Index funds will have to buy around 66m shares in MPL from fri, that's a lot when it's only trading less than 20m a day at the moment. Credit suisse report ( and they are negative on the stock) thinks it'll be weighted at 1.4bps of the FTSE DM index which is around $134.2m of stock. or roughly 66m shares.
and here is the index summary factsheet where it shows the index rebalancing rules, you can see that the stock is included in the FTSE DM index from the close of business on the first day of normal settlement trading (in this case this fri 5th) http://us.ishares.com/content/repository/material/comparison_broad_market.pdf
Also it should go into the MSCI world index on the 10th day of normal trading (in this case thurs 18th dec), and credit suisse think that will demand 1.5bps weighting= $160m worth or roughly 90m shares to be bought.
however if the share price falls below 2.09 it might not get in...with the USD AUD at 85c and share price at 2.14c AUD its 4% over that USD $4.896bn level. But under 2.09c or if the AUD slips against the dollar it could miss out on fast entry.
MPL Price at posting:
$2.14 Sentiment: Buy Disclosure: Held
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