Forum Archive Index - September 2000

[Brian Gale <brigale@i4free.co.nz>]

Oli put up the question as to where the NZSE40 Index would
be if  TEL was still around $9.00

I can't answer that question directly with an Index  figure 
but from my research some 36 securities out of a total of 51 have shown
gains ranging from 23.6% to 1%, against the trend of a falling Index
since Mid July.
NB. The Index is 40 Companies but 51 Securities

The following have risen better than 10% (Ranging between 23.6% -
11%

FEG, GPG,MON,TTPGC,WPT,BRY, AIRVB, POT, IFTWA,TLT,KIPVB,AXA, AIA, SKC,
BCH,FAP & WAM

A further 19 securities show smaller increases, ranging from 9.5% -
1%

Because those showing losses include many of the higher weighted
securities the overall index has been dragged down. 
TEL,CAH,CEN,INL,SKY,NCH,TWR,TWRCA,TPW,POA,TLS,TLSCB,ADV. total 58% of the
capitalisation weighting but only 30% of the listing.

As has been discussed in previous postings if the heavyweights don't
perform the TOP40 index tends to give a distorted view of  the
overall performance of the market.

In summary:-  70% of the listed securities increased in price and
30% fell (some only minimally) but the Index fell by some 70 
points.
It would seem logical that the Index is weighted (maybe there are ideas
as to a better method) but it does seem to create this distortion

BG
(I have appended a copy of the spreadsheet showing the gainers)

against the trend.xls