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19-09-2021, 09:04 AM
#981
 Originally Posted by jimdog31
supply and demand
Sure, but KPG isn't a larger proportion of any index now than it was a month ago, so why would "index rebalancing" increase demand.
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19-09-2021, 09:24 AM
#982
Member
Originally Posted by Biscuit
Sure, but KPG isn't a larger proportion of any index now than it was a month ago, so why would "index rebalancing" increase demand.
Yeah exactly, I assume they mean theres a big investment inflow into index funds? Not sure this is reflected in other shares..... but it was a good day, so maybe.
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19-09-2021, 10:34 AM
#983
Originally Posted by Ohdoyle
Yeah exactly, I assume they mean theres a big investment inflow into index funds? Not sure this is reflected in other shares..... but it was a good day, so maybe.
"Index rebalancing" may involve more than just adjusting a portfolio to index proportionality although I would have thought that would be by far the major thing - as passive funds are known to exacerbate trends rather than work against them. It may have something to do with index rebalancing but its not obvious to me how.
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19-09-2021, 12:45 PM
#984
Originally Posted by Biscuit
Sure, but KPG isn't a larger proportion of any index now than it was a month ago, so why would "index rebalancing" increase demand.
if anything I thought it would have been the opposite effect - portfolio rebalancing reducing the size of KPG as it has dropped in value vs the broader market recently. hard to see a 4.5% upswing in a single days trade being caused by rebalancing.
actually think it has more to do with the clear signaling by multiple government ministers this week that lockdowns are not intended to be used in future as long as vaccination rate continues to progress as it has been. With over 73% of eligible with at least a single dose (and another 6% booked to receive one) we are in the final period of region-wide lockdowns as a needed tool.
Last edited by LaserEyeKiwi; 19-09-2021 at 12:46 PM.
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19-09-2021, 02:58 PM
#985
Every third Friday of every third month, (March, June, Sept and December) the NZX50 is "rebalanced" in the closing 15 minute match process.
The exact reasons why some shares are bought up and others sold down and the volumes and reasons involved are not know to this old mutt but the fact remains this rebalancing is a known event. If you look carefully at this image you will see that ostensibly almost all the volume was done at the close of tradeKPGchart.gif
A clever investor looks to try and take advantage of these scheduled rebalancing events and tries to milk any price anomalies resulting from them.
Last edited by Beagle; 19-09-2021 at 03:01 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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19-09-2021, 03:21 PM
#986
Originally Posted by Beagle
Every third Friday of every third month, (March, June, Sept and December) the NZX50 is "rebalanced" in the closing 15 minute match process.
The exact reasons why some shares are bought up and others sold down and the volumes and reasons involved are not know to this old mutt but the fact remains this rebalancing is a known event. If you look carefully at this image you will see that ostensibly almost all the volume was done at the close of trade KPGchart.gif
A clever investor looks to try and take advantage of these scheduled rebalancing events and tries to milk any price anomalies resulting from them.
I would like to say the chart proves your point...but more the opposite, there is a fairly even incline 'throughout' the day
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19-09-2021, 05:10 PM
#987
Originally Posted by Habits
I would like to say the chart proves your point...but more the opposite, there is a fairly even incline 'throughout' the day
And the three large off-market trades 'after the close' were made at the closing price, they didn't alter the share price up or down.
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19-09-2021, 07:35 PM
#988
Ya think those in the know wouldn't front run the anticipated demand at close ? Why wouldn't they ! Negotiated deals after the market closes are a normal part of brokers matching up demand and supply. The volume at close speaks for itself.
Last edited by Beagle; 19-09-2021 at 07:40 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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20-09-2021, 09:58 AM
#989
there may be some selling coming in the AUS and NZ property markets.
Think everyone who follow global markets know the high yield market in China has been the birdie in the coal mine for a few years now.
Birdie coming home to "roast" (hot little tree branch on fire) now....
Chinese housing giant unable to pay debts and could wreck global economy - NZ Herald
Last edited by Waltzing; 20-09-2021 at 09:59 AM.
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21-09-2021, 09:09 AM
#990
Boom! KPG confirms it is moving ahead with Build-to-rent developments at Sylvia Park & LynnMall. First up is 295 apartments at Sylvia park, starting construction before the end of this year. Goal for 1,200 apartments total at Sylvia Park.
investor call at 10.30am.
https://www.nzx.com/announcements/379455
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