Maybe just Maxtrade traded max. Sold all his holding off.
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Yeah was hoping to pick some more up cheaply on the supposed weakness
Blackrock are supposed to be buying & selling the shares involved in their rebalance effective April 19th our time. So whatever is going to happen (or not) is supposed to be scheduled for next week. Time will tell how this plays out.
Traders jumping the gun, FOMO seeing SP increasing thinking that was the bottom. The sell off hasn't even really been actioned yet. Blackrock will likely try to time holding out most availability until managers can see the market has buyers and increasing SP. I am sure they are happy to see the SP where it is already now up off recent lows!
A lot of transactions will be off market with brokers at discounted prices. However next Monday/Tuesday NZ time will be when shorters are waiting for. Buy those shares back when supply is saturated and in turn SP will be lower. Its an index fund so proportionally to the global clean energy fund the small amount of CEN and MEL being sold at a lower SP won't be a concern to the fund as a whole really.
Time will tell, but logic suggests that next week there will be an overabundance of shares to be sold, SP will follow suit until they are all sold (and there is a LOT to be sold off).
Shorters will likely be looking to buy back in CEN 6.0 - 6.2, and MEL 4.5 - 4.75. Who knows with this amount of shares to be sold it may temporarily drive SP's even lower. Look at what happened on the other end of the scale when all those shares needed to be purchased by the ETF, SP skyrocketed. Likely will do the reverse next week on the downside.
SP will then probably stabilise back where SP's were trading prior to all of this. CEN 6.25-6.4, MEL 4.75-4.85. Keeping in mind Rio Tinto is still on wind down mode. Given a bit of respite for now but that will be relatively short lived until it comes back to the forefront again.
Many of the traders looking for growth gains off energy shares will re-evaluate and realise these spikes in our energy companies were somewhat 'artifially driven'. Once corrected, then these energy companies will loose their shine to many, and the share price will bounce around these lower more normalised levels again.
Checked this URL again. As at 13 April 2021 Blackrock still held 43,506,182 shares. This volume is yet to hit, but a lot of institutions will have lightened up their holdings in advance of buying when the selling occurs.
The million dollar question is how competitive will the buying be when the majority of these shares are released onto the market, and therefore how much will the price fall (assuming of course that it does)!!
Posted this a week ago on MEL thread - suppose still applies
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Businessdesk has article BlackRock’s looming sell down of Meridian may never happen
Quotes a guy from Kernel Wealth who says all the talk is incorrect
Like this bit -
“To be frank, most active managers in New Zealand don’t understand how indices work,” he said.
What happened to the sell off. Haven't seen any large volume of shares traded today yet. I know the trading day isn't over yet but surely they aren't just going to dump them on market end of the day for Mondays opening?
Dunno. It was your sell-off scenario, so maybe you can tell us? :)
Slightly >average volume today, up 4%. Could it really be a pump and dump? Possible head & shoulders forming here? I certainly see resistance at these levels.
I've sold down my CEN holding by 20% just in case, taking advantage of this afternoon's spike. Next week we'll see...
Trading being extended for 45min for the big event. Stay tuned.