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I mentioned you in the earlier post as Kenny rather than KenniGT.
My spell check may have corrected KenniGT.
I definitely wasn't correcting any other spelling.
Hoping for a descent up lift on Monday onwards:)
Dave it was 2am ;)
KenniGT
Spell check!
Thanks Justme1,
I have felt that the sp has been manipulated over the last 3 weeks.
Oil and ftse up, we stayed or dropped. 3 days of 30p etc etc.
Yesterday was the worst so far.
Your explanation makes sense of it.
So on Monday, especially with oil on the up where do you think the sp will go?
Ps Thanks for other related posts too ( Kenny)
justme1 thank you for this explanation. I am happy that you are sharing this knowledge. Much appreciated.
Something tells me that like with former colonies of France or UK, ties with MS are still there and they get heads up ;) I might been wrong but I watched enough documentaries about crooks within those financial institution (Goldman Sachs deals with 1MBD and Malaysia or lehman brothers balance sheet cook up and mortgage market frauds) to trust fully official line. But as I said in at the beginning, I really appreciate explanation ,as this insight allows us understand drop is due to market forces. And I am sure, someone planned and is benefiting from today's drop - of not only PMO but many other companies as well.
Kenni, MSCI has been an independent company for a long time so Morgan Stanley has nothing to do with the index rebalancing. The index rebalancing is to reflect the stock market based on the market cap of each company and few other rules and a review is done normally quarterly or semi annually. It is just like S&P or FTSE which are other companies with their own indices, and financial institutions use these indices as benchmarks for their funds. PMO got removed from the index because it's market cap shrunk so much compared to other companies.The deletion and addition of companies to the index would have been announced couple of weeks ago before the actual event itself. Hedge funds and active funds do use the rebalancing event to make money by either guessing who is going to be added or removed before the announcement, or by catching the share price movement after the announcement since passive index tracking funds have to buy or sell shares to mirror the index as closely as possible and they don't care what the share price is, and that would push up or down the share prices depending on if there is enough buyer or sellers in the market to cross trade.
Thanks AK.
I did not know sth like this existed and could affect share holder who follows the company.
Too me another thing which is wrong with current financial markets.
Thanks AK
Now it all makes sense! Didn’t even know such system even existed!
Read the article, checked London stock exchange site for all off market closing and it all makes sense now
That's useful Ak,,
MSCI plans to complete the rebalances at the close of 29 May despite other index providers remaining hesitant to rebalance as a result of the volatile periods seen in the first few months of 2020.
Should see a strong rebound next week now.
Oil trading up too.
Kenni,
for more info:-
https://www.etfstream.com/news/11495_msci-makes-sweeping-changes-in-latest-index-rebalances-following-coronavirus-turmoil/
I think I uderstand ;D
MS lost a lot here, they were buing and selling on the way up. And now they found new idea how to recover monies from PMO. Remove from their index, so the price drop. Other funds loose, MS will buy more (as on 26th May).
That is my logic knowing corrupt nature of those financial institutions.
Ok, so I was right about Morgan Stanley. They are playing with PMO still after they silly sell off at 15p...
The MSCI World is a market cap weighted stock market index of 1,644[1] stocks from companies throughout the world. The components can be found here: [2]. It is maintained by MSCI, formerly Morgan Stanley Capital International, and is used as a common benchmark for 'world' or 'global' stock funds intended to represent a broad cross-section of global markets.
Justme1 thank you for you inside view. I am a bit outside ;) have no idea about funds etc.
What kind of index we are talking about? MSCL is based were?
KenniGT, the index tracking funds have to sell the shares today at any price as PMO is not going to be part of the index. If there is not enough buyers in the market the share price would drop disproportionately to the market cap.
I hope so, threw 10k in just before the bell
go on Olivia nearly there. big push now when you get to $33.00
ColonelD. Sorry it's the semi annual review today not quarterly. Topped up some more myself at closing auction. Hopefully will rebound a bit on Monday if Trump doesn't say anything later today causing oil price to drop.
I would expect big bounce next week...
16:35:09 29-May-2020 26.69 GBX 22,164,862 £5,915,801.67 Uncrossed Trade
That is only £6mln out of 235mln current valuation (after drop).
If drop 10% represents 6mln, than this drop value company at 60mln... completely out of proportion.
It's the MSCI small cap quarterly rebalancing day today and PMO is getting kicked out of the index. Probably the reason why the share dropped as passive funds are forced to sell the shares.