Quote Originally Posted by sideline View Post
Downgrades are one reason for the drop yesterday - I see Forbar did one.

The other issue coming up is the S&P index rebalance on 15 Sep. MPG's stay in NZ50 was borderline last time -
does anyone expect them to stay in the index this time around??
Some of the bigger transactions could be index fund managers adjusting their portfolios before the announcement is out?!?

I'd also be interested to know peoples thoughts on this. How likely is it that MPG would be removed from the NZ50 and what would be the ramifications of this?

Just had a quick play around on a Sunday afternoon...

MPG comes in at no. 88 of 167 listed companies on the NZX in terms of market cap ($209,477,237).

In terms of capitalisation for companies in the NZ50, MPG comes in at no 46 of 48 (only 48 companies in the NZ50 according to Wikipedia??)

MPG is 1 of only 3 companies in the NZ50 in the building sector - FBU, MPG, STU (STU is no 47 of 48 in terms of capitalisation).

What alternative companies in the building sector could replace MPG or STU in the NZ50? It doesn't look like there are many options available in this underperforming sector. Could the NZ50 reduce exposure here?

As some have said, this correction looks overdone. Thankfully sold old at above 140 with a minor profit. However, that doesn't mean I could resist trying to catch a falling knife on Thursday and Friday... Average cost price per share at 116. Bring on the recovery / dead 'possum' bounce