Singtel - Getting slaughtered, page-2

Just found an answer to the sell off.

SingTel sold-off to new low on S&P 200 exclusion
June 14, 2002
SingTel’s (SGT) ASX-listed equity sunk to a fresh all-time low on Friday on dual concerns of the global telco outlook and its exit from the S&P/ASX 200 index. Just before market close the stock was soaking in red, down 10c, or 6% to $1.38, below its previous all-time low of $1.44 and well below its listing price of $2 in September 2001.

According to Bloomberg Singtel is also set to be dropped from the S&P 50 Free-Float Provisional Index.




The ASX 200 is perhaps the most widely followed index by local fund managers, whose performance it often benchmarked against it. Accordingly, funds usually hold a position in stocks equal to its weight in the index. Therefore, traditionally in the short-term when stocks are removed from the index demand dries up, while their replacements usually experience a marginal re-rating.

In other changes to the S&P ASX 200 index, Hutchison Australia (HTA) was removed, while food products group SPC Ltd (SPC) and the recently listed SFE Corp (SFE) were added.

At 1545 AEST Hutchison shares flat at 38c. SPC was 3c lower at $1.40 and SFE Corp was 3c weaker at $3.80.