TLG Chart, page-3975

HI Hubbo

ASX300 rebalanced happened last Friday. TLG removed from the index.

It will have some effect.

With the big institutional super funds like AusSuper who only permit share trading with ASx300 stocks, once the stock is removed from the index selling is still permitted however no further buying can occur. Therefore less buying pressure from that source.

Most investment funds hold stock reflecting various indexes (ASX100, ASX200,ASX300 and the like) in proportions according to their weight in the index.
So for those investment funds they with acquire shares in the new 16 inclusions to the index, using funds from the sale of shares of those companies removed from the index.

So your right it will add some weight to the sellers pool.

There is also some effect on shares that have been loaned out. With removal from the index these loaned shares may have to be recalled. They need to be recalled to be sold. That gets complicated.

cheers Lies