FTSE quarterly reshuffle. how does it work ?

blinko

Hi all

was wondering if someone could help me I am looking to get a better understanding of the FTSE quarterly reshuffle.

The below is a conversation from FT Alphaville

What I am interseted in is what do they mean when they say

1 . ) 17.2m passive demand for Aberdeen, equivalent to 6.2 days trading. ??

2. ) Not a lot of free float around on either. - I assume this means shares not held by investors ? is this good or bad ?

Thanks




Where now?

You meniointed the Footsie review earlier

when’s that?

Oh, it’s a while off yet.

mentioned eve

7th March is the drop date.

Though it’s still worth keeping an eye on the runners and riders.

GKP would obviously be joining, but for its AIM status

Yes. But for its Aim status.

(Up another 5% this morning. Because the sun rose.)

(GB Krona — will ask Neil for the note)

So … assuming GKP doesn’t pull forward its move from Aim to before March ….

Here’s what’ll step into the FTSE 100

Aberdeen Asset Management’s in.

As is Croda.

Incredible comeback for Aberdeen over recent years

After the split cap debacle

And, if I remember my Bloomberg boilerplate descriptions correctly, Croda is the company that makes chemicals from sheep grease.

lovely

Not a lot of free float around on either.

17.2m passive demand for Aberdeen, equivalent to 6.2 days trading.

(That’s according to Caz.)
2m for Croda, or 6.9 days.

Could get quite squeezy.

Oh, and going out are Essar and Cairn.

That seems nailed on after recent events.

As for the 250 ….

sabretoothtigger

1 & 2 they are talking about spikes in demand. Like a supermarket gets stock of 20 bread loaves a day but you know 40 will want it a certain day, price will rise short term at least

Every stock has like a regular amount of stock freely available. Low free float means a price can rise more easily. 6.2 days trading is how long will this order take from normal volume

Now its possible high demand can be met with high supply but if we estimate average supply. You have one factor of three, guess demand and that leaves price like F=MA Dont stand in the way of something big moving, Essar is nasty faller besides the news it has this kind of momentum

They are talking about ft100 as that is a giant sector of immediate buying. All those dumb trackers. Get ahead of a buy and you get a gain, they just have to guess who will enter the index, etc

http://www.telegraph.co.uk/finance/markets/questor/9120860/Questor-share-tip-Essar-Energys-Indian-woes-may-drag-on.html