In reference to the announcement made by NET via twitter indicating that NET is 1 out of 46 initial tech companies to be listed as part of the new ASX All Tech Index (XTX) commence next week.
If this is true, now its all explained the 60+++ m shares acquisition for the past week. Also this means we will see more accumulation over the next two weeks for managed fund/index fund to get NET inlcuded in their portfolio.
This is a good and bad news.
When a company'sstock is addedto the specificindex, the mutual funds will then purchase thestockto add it to their investment portfolio. Those purchases will add to the demand of thestockand cause the price to rise. The reversehappens when a stockis removed from theindex.
Enjoy the wild ride for the next few months until the growth rate CAGR is settle to a known number - then index funds would be able to generate a valuation that they willing to get to