Forum Archive Index - November 2001

["greg" <gregoire@paradise.net.nz>]

Hi Gerry

 

A little hard to say given the amount of information coming from the companies.

 

One reason for the increased interest in FFS/PA could be that we are possibly going to see CEN removed from the NZSE10, with market cap (at end of trade Friday) of $2.4b.  The new addition to the NZSE10 (SKC? market cap $1.3b) will have a substantially lower market cap.

 

The result of this is that the remaining 9 companies will end up with a bigger proportion of the total market cap of the NZSE10, or to put it another way, have a greater weighting on the NZSE10.

 

It seems to me that passive funds which have the NZSE10 on their porfolio will have to increase their holding of these 9 companies.

 

We may be seeing brokers buying up NZSE10 stocks to on-sell them to various fund managers later.

 

Of course there are a lot of reasons for the other companies' shareprice movements this week, but this is all I can think of for FFS and to a certain extent TEL.

 

Rgds,

greg