Australian super funds collectively are holding 3 trillion of asset. Take Australian Super as a typical example, they have 22% allocated to Australia shares to the value of $660 b. The All Ords total capitalisation as at 01.06.2020 is $1.861 trillion and PYC's $278 m weighting is 0.015%. If the game is fair, PYC's inclusion in the All Ords would imply $99M of PYC shares to be picked up by these super funds.
Okay most of the super funds would skew more towards ASX 50, 100, 200 and 300 shares. Let's say only 10% share investment (or 2.2% of total super fund) would be invested in ASX 500 shares. It would still be a sizeable $9.9M or 99 million shares @ 0.10 per share to be bought in the weeks or months ahead.
This is a very broad brush guesstimate but it does put PYC on the map ranking 335 in the top 500 ASX shares. The next quantum leap is getting into ASX 300 which requires approx $400 M capitalisation. That would happen when the SP goes to 14c and it's a lot sooner than most people would think.
After Tuesday's strong green candle, Wednesday opened strongly and brought the profit takers out. The minor selling persisted till today. Looking back, PYC has a tendency of retracing to the middle of the initial upthrust. Let's hope the weaker hands are shaken off and the SP could get on its merry way in the coming weeks.
These are my TA thoughts, DYOR! If you like more of these charts and analysis, please click the "Great analysis" button for encouragement
PYC Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
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