BHP Unification - ASX Upweight in One Shot
Event-Driven506 Views, 12 Jan 2022 07:11
EXECUTIVE SUMMARY
- As expected, S&P DJI have announced that BHP Group (BHP AU)'s weight in the S&P/ASX indices will be increased all at once at the close of trading on 28 January.
- We estimated passive S&P/ASX trackers will need to buy over A$4bn of BHP Group (BHP AU) leading to a funding sell of that size on the other index constituents.
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BHP Group (BHP AU) has risen 25% from its lows in November. We expect most UK shareholders have finished selling shares and the one-shot inclusion could take the stock higher.