Ftse review in and out, how does it work ?

romski

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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 ….
 
1) so 6.2x the average daily volume for aberdeen have been traded. I think passive would pertain to the type of player who they think is buying up the shares, a pension fund perhaps, somebody quite clunky rather than a HF

2) free float is the % of shares not tightly held by directors etc. the bigger the better, as voting influence is more spread out
 
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