|
PureBytes Links
Trading Reference Links
|
> -----Original Message-----
> From: Daniel Goncharoff [mailto:thegonch@xxxxxxxxxx]
> Sent: Sunday, July 14, 2002 12:35 PM
> To: realtraders@xxxxxxxxxxxxxxx
> Subject: Re: [RT] S&P 500
>
>
> In this case, I believe you are wrong. The change was specifically made
> to better reflect the markets, by making the S&P 500 more of a US index.
> The benchmarking of equity indices for institutions, hedge funds, money
> managers, etc. is big business for S&P, DJ and MS. The stocks removed
> from the index are important components of other geographic segments,
> and were an issue for index traders and investors.
>
It might've been a little more international-friendly if this rebalancing was
done back in the bullish 1998-99 days of the market:
http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020710/bs_nm/markets_sp_eur
ope_dc_1
[...]
S&P said it took the seven out because it had long wanted to make the index a
purely U.S. one, now that it had a well established stable of international
indices.
It said it also wanted to avoid double counting of the seven foreign companies
in its other global indexes and to reweight the index that had become
overweight on energy and underweight in financial stocks.
But European fund managers were angry at the speed with which the adjustment
would be made. Some also said it smacked of protectionism. "I do understand the
reasoning of creating a 100 percent U.S. index, but we are sort of mad that
there are only 10 days left before the actual rebalancing," said Gert-Jan Geels
at Eureffect Asset Management.
At least seven percent of Royal Dutch's shares and 10 percent of Unilever's
will now come on the market, he said. "It is absurd to just out of the blue
announce something like this."
The move helped lop 3.5 percent off Amsterdam's blue chip AEX index, where
Royal Dutch and Unilever have a combined weighting of more than 20 percent.
"It's a pathetic move. it's political," said one.
"It's a cheap trick to boost U.S. exchanges. They are killing these two shares
and the entire AEX index today.
"This smacks of the protectionist steel import tariffs they (the United States)
imposed this year," said another fund manager. "It leaves a bitter taste." In
London, the Dutch groups' UK associated stocks Shell and Unilever Plc fell
about four percent each.
Royal Dutch is the 12th largest stock by market value in the S&P 500 and joined
the index when it was first inaugurated in 1957. Unilever followed in 1961.
Barrick Gold was the last foreign stock to joint the index in 1993, after which
the criteria were changed to exclude non-U.S. companies.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Save on REALTOR Fees
http://us.click.yahoo.com/Xw80LD/h1ZEAA/Ey.GAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|