When "blind" liquidity moves... FTSE reorders the papers for #TASI stocks
- In financial markets, there is "smart" liquidity that chooses opportunities, and there is "obligated" liquidity that follows the rules.
Today, Thursday, the Saudi market is set for the second type... and in large numbers. - FTSE Russell (FTSE Russell) is conducting its periodic review, and the mechanism is simple but its impact is huge:
Global fund and index managers around the world will execute large buy and sell orders during the "Closing Auction" and the "Close Price Trading" period to adjust their portfolios with the new weights.
Why is this date important? Because the liquidity entering today is not a bet on the future, but a right to the present. - The new winners on the world's "radar": The most notable aspect of today’s review is the inclusion of new names into the club of major and global indices:
Flynas (Flynas): The biggest jump, joining the (Mid Cap) index. This means direct cash flows from funds tracking this specific index.
SMC (SMC), Sports clubs, and UCI C: Joining the (Micro Cap) index.
An opportunity for these companies to be under the microscope of foreign investors seeking growth. - Lesson for individual investors: You may see sharp fluctuations or illogical trading volumes in the final moments of the session. Do not panic, and do not get carried away.
This is not a "runaway" nor an "attack".. These are just mechanical operations to adjust weights.
The market is reordering its seats to welcome foreign inflows, and the newly joined companies have just received a "passage ticket" for international institutional portfolios.
The actual implementation date: Next Monday, but the impact begins from today’s close.
Follow me #GateLaunchpadKDK to understand together the language of liquidity.
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When "blind" liquidity moves... FTSE reorders the papers for #TASI stocks
-
In financial markets,
there is "smart" liquidity that chooses opportunities,
and there is "obligated" liquidity that follows the rules.
Today, Thursday, the Saudi market is set for the second type... and in large numbers.
-
FTSE Russell (FTSE Russell) is conducting its periodic review, and the mechanism is simple but its impact is huge:
Global fund and index managers around the world will execute large buy and sell orders during the "Closing Auction" and the "Close Price Trading" period to adjust their portfolios with the new weights.
Why is this date important?
Because the liquidity entering today is not a bet on the future, but a right to the present.
-
The new winners on the world's "radar":
The most notable aspect of today’s review is the inclusion of new names into the club of major and global indices:
Flynas (Flynas):
The biggest jump, joining the (Mid Cap) index.
This means direct cash flows from funds tracking this specific index.
SMC (SMC),
Sports clubs,
and UCI C:
Joining the (Micro Cap) index.
An opportunity for these companies to be under the microscope of foreign investors seeking growth.
-
Lesson for individual investors:
You may see sharp fluctuations or illogical trading volumes in the final moments of the session. Do not panic, and do not get carried away.
This is not a "runaway" nor an "attack"..
These are just mechanical operations to adjust weights.
The market is reordering its seats to welcome foreign inflows, and the newly joined companies have just received a "passage ticket" for international institutional portfolios.
The actual implementation date:
Next Monday, but the impact begins from today’s close.
Follow me #GateLaunchpadKDK to understand together the language of liquidity.