Re-rating on the New Zealand stock exchange's lucrative top
20 companies list has pushed out the ANZ bank, Freightways
and Guinness Peat Group.
Moving into the top 20, is Infratil, which made about $400
million floating petrol retailer Z Energy recently, Mighty
River Power, despite its share price languishing 10% down on
its recent float price at $2.21, and Xero, the bourse's top
performer during the past year, despite it never having
posted a profit.
Institutional investors generally hold a high proportion of
top 20 stocks, there are top 20 index-only funds, and the top
20 is the basket of companies used in the complex derivatives
Craigs Investment Partners broker Greg Easton said the three
companies elevated to the top 20 all had free-float
valuations around $1.4 billion, while displaced companies all
had free-floats ranging between $636 million and $663
Inclusion in or exclusion from the top 20, in the NZX's
quarterly review, relies on the ''free-float'' value of
listed companies. Free-float analysis strips out major
shareholders with 10% or more of a company who hold their
stakes long-term, and the remaining free-float is those
shares otherwise available for trading.
Mr Easton noted the ANZ bank, with a market capitalisation
(of all its shares) was $A96 billion ($NZ109.9 billion) but
its free-float was only $663 million.
''Those other companies [Freightways and GPG] are victims of
their own size, with Xero and MRP simply overtaking them,''he