The results of the latest MSCI reshuffle are out and they are already having an impact on stock prices.
As was widely rumoured, Ladbrokes has been removed from the MSCI World index, along with upmarket housebuilder Berkeley. Traders say this will trigger selling equivalent to 4.6 days average trading volume in Ladbrokes and 10 days in Berkeley.
The main beneficiary of the latest review seems to be satellite communications company Inmarsat, which is entering the MSCI World Index. Dealers reckon funds which track this index will need to buy the equivalent of 17 days average volume ($241m) by the time change becomes effective at the end of the month.
And this could create quite a squeeze given that Inmarsat is relatively illiquid stock owing to the 28% stake controlled by Philip, the Midas of Misery, Falcone. Another 13 per cent of the company is in the hands of UK hedge fund Lansdowne Partners.
Unsurprisingly, shares in Inmarsat are the biggest riser in the FTSE 100 on Thursday morning.
And here is a handy list of the top buys and sells based on the reshuffle. (UK stocks highlighted)
Europe – Top 10 Buys – Expected Days to Trade
INMARSAT 17.2
VOPAK (KON.) 10.4
IMMOEASt 8.2
THOMAS COOK GROUP 3.7
TRYGVESTA 1.4
UNIBAIL-RODAMCO 1.1
AP MOLLER MAERSK B 1.0
BAYER 0.9
SOCIETE GENERALE 0.5
SWEDBANK 0.5
Europe – Top 10 Sells – Expected Days to Trade
BERKELEY GRP 10.2
HAMBURGER HAFEN UND LOGI 9.1
VOLKSWAGEN STAMM 7.8
ACEA 6.2 5
RESOLUTION/FRIENDS PROVIDENT 5.0
LADBROKES 4.6
SARAS 4.1 8
LOTTOMATICA 1.8 9
NESTLE 1.1
NOVO NORDISK B 0.9