re: qantas going lower/foreign ownership hilldweller,This is an...

re: qantas going lower/foreign ownership hilldweller,

This is an extract from Amro's morning warrant report:

QAN: The flying Kangaroo has 1,774,112,946 shares on issue. It also happens to have a foreign ownership limit level of 49%. Why do I mention this? Numbers we saw y’day indicated that foreigners owned 50.48%. My outstanding maths skills thus tell me that 1.48% of issued capital should theoretically need to be sold to get it back to legislated levels. Now this is NOT going to happen since that would effectively ban on market participant from buying stock, but my point was it might bring some pressure to bear short-term on the stock, or at the very least, a lack off new buying. Now, also of relevance to QAN was that BA’s debt is now officially junk status (and the company’s not happy about that either).


What I should have said in my original post is that there'll be a lack of buying pressure from overseas investors, since they obviously can't buy until someone sells down.