S&P DJI NZX - September Review

[Balance]

http://nzx-prod-s7fsd7f98s.s3-websit...285/330139.pdf

SKO in, NZR out

[Greekwatchdog]

Update on For Barr on this....
S&P DJI have confirmed at the September 2020 quarterly index review that The New Zealand Refining Company (NZR) willexit the benchmark S&P/NZX 50 indices, allowing Serko (SKO) to enter. Changes are effective close of market, Friday, 18September 2020.Serko confirmed to enter the S&P/NZX 50 benchmark indicesAs expected, SKO will enter the S&P/ NZX 50 benchmark indices due to NZR dropping below the required level of six-monthaverage market capitalisation. SKO will enter with an index weight of approximately 0.23% (rank 48). We estimate passive demand forSKO will be in the order of +1.4m shares (11.2x ADV) and -3.6m shares for NZR (7.8x ADV).Figure 1. September 2020 review: Confirmed changesIndex Enter Exit Expected Weight (rank)S&P/NZX 10 No changeS&P/NZX 20 No changeS&P/NZX 50 SKO NZR 0.23% (48)S&P/NZX 50 Portfolio SKO NZR 0.34% (48)Source: Forsyth Barr analysis, S&P DJIQuarterly re-weightings confirmed — Looking aheadAs with each quarterly index review, S&P have updated indexed shares along with Investable Weighting Factors (IWFs) for indexconstituents. The companies with the largest re-weightings are presented in Figure 2. Updated indexed shares (i.e. via revisedAdjustable Weighting Factors) for the S&P/NZX 50 Portfolio index will be released to index subscribers, close of market, Friday, 11September 2020.Looking forward, with the acquisition of Metlifecare (MET) by Asia Pacific Village Group (APVG) currently proceeding, we have againupdated our index inclusion/exclusion index model. Using current six-month average free float market cap rankings and liquiditycalculations, our model suggests that the most likely replacement for MET would be (1) Tower (TWR) or (2) Hallenstein Glasson(HLG), given, at this point, TWR's current liquidity figures are borderline.We again note that based on our calculations, Pacific Edge (PEB) will not be eligible for current index inclusion having (just) failed theliquidity threshold at the September 2020 index review. Should our calculations be incorrect, then PEB would rank ahead of TWR andwould enter the S&P/NZX 50 benchmark indices should MET be removed.Figure 2. September 2020 review: Major reweighting changes expectedIndex Current Weight Expected Weight Total ChangeS&P/NZX 50 IndexSKO n/a 0.23% +0.23%SKC 1.49% 1.70% +0.20%NZR 0.10% n/a -0.10%RYM 4.64% 4.23% -0.41%S&P/NZX 50 Portfolio IndexSKO n/a 0.34% +0.34%NZR 0.14% n/a -0.14%S&P/NZX 10 IndexAIA 10.77% 10.94% +0.17%RYM 7.29% 6.70% -0.59%

[Balance]

Thank you, Greekwatchdog. 👍

[Greekwatchdog]

Just thinking Balance, it will only take 1 maybe 2 positive announcements for PEB to get in?? Be interesting 3 months their..

[Balance]

Just thinking Balance, it will only take 1 maybe 2 positive announcements for PEB to get in?? Be interesting 3 months their..

Liquidity is the key issue with PEB - market cap is fine as PEB is comfortably well ahead of HLG & TWR.

So need to keep the volume of trades going!

[Greekwatchdog]

What so we buy 100k a day to keep pumping thru...Have enough already...Or can you have enough??

[Balance]

What so we buy 100k a day to keep pumping thru...Have enough already...Or can you have enough??

Need a couple of good announcements to pump the volume up again.

[Greekwatchdog]

Can't be far away about to close books for 1st half of financial year...