Forum Archive Index - July 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Below is the reply, I got from the NZSE.
It is taken longer for RBC to be included in the 40 index than I thought.

However, I understand that it now has entered the Mid-cap Index which is
important to many companies. I think that between now and September, at
least 2
companies could be removed from the 40 index.

Most NZ funds and some overseas investors will have bought into this stock
anyway by now!

The good news is that the current price of RBC does as yet not reflect the
transfer to the 40 index. So, when it is due, investors who are already
cherishing the prospect of the share buy-back can perhaps expect a few cents
extra due to the inclusion.

Thank you, NZSE, a very well presented answer!

Gerry





----- Original Message -----
From: "Martin Rea" <martin.rea@nzse.co.nz>
To: "G Stolwyk" <stolwyk@wave.co.nz>
Sent: Wednesday, July 04, 2001 12:31 PM
Subject: Re: RBC in 40 Index?


> Hi Gerry,
>
> At the last Quarterly Review of the NZSE40 index RBC was not
> included.
>
> To enter the NZSE40 a company can either force its way into the index
> or replace a company which has been forced out.
>
> To force its way into the index a company must rank above 30th
> position by market capitalisation. If introduced it also needs to be
> more liquid than the stock which is removed. At the last review,
> which took effect 02 July 2001, RBC ranked in 44th place. Thus it
> could not force its way in to the NZSE40. (Note the market
> capitalisation is a six month average minus the best and worst
> months. This is done to smooth out any abnormalies)
>
> A company is automatically removed from the index if it ranks below
> 50th position by market capitalisation. At the last review THL ranked
> in 50th position and TTP in 48th position. If at the last index
> review any of these companies had ranked below 50th position RBC
> would have entered the NZSE40.
>
> Having the two ranking criteria means that it is more difficult for a
> company to enter the index than to be removed from it. This is done
> on purpose so that people who have portfolios that track this index
> have some stability, and companies are not being removed at one
> review and introduced at the next.
>
> In answer to your original question - will RBC be included in the
> NZSE40 in the future? Quite possibly, but at this stage I am unable
> to predict what is going to happen between now and the next quarterly
> review which will occur in September and take effect on 01 October
> 2001.
>
> I hope this helps
>
> Best regards
>
> Martin
>
> On 3 Jul 01, at 21:19, G Stolwyk wrote:
>
> >
> > Martin,
> >
> > You may recall that I enquired about this some time ago.
> >
> > Can you please tell me if RBC has now been or will be included in the 40
Index?
> >
> > Gerry
> >
> >
>
>
>



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