French telecom gear maker Alcatel-Lucent and UK hedge fund Man Group are among the European companies set for deletion from MSCI global standard indexes this month, putting more pressure on already embattled shares.
Belgium’s Mobistar, Germany’s Wacker Chemie , Italy’s Autogrill and Mediaset, Dutch SBM Offshore, Spanish Acerinox and Swiss GAM Holding are also due to be deleted as of the close on Nov. 30, according to MSCI.
Deletion from the index tends to put selling pressure on a company’s shares, as they are ditched by tracker funds and other investors use the MSCI benchmarks.
Alcatel, which is also a candidate for expulsion from the French CAC-40 index after its stock price dropped 27.5 percent so far this year, could see net sales of 110.5 million shares as a result of the MSCI deletion, according to Societe Generale. That is equivalent to 2.5 days’ trading volume.
For Man Group, SocGen estimates selling pressure at 86.5 million shares, equivalent to 5.5 days’ trading volume.
Shares in Man Group were down 3.6 percent at 0818 GMT, while Alcatel fell 1.5 percent and GAM dropped 5.2 percent.
Additions, on the other hand, can boost a stock. In the latest review, these include Dutch cable and telecoms firm Ziggo , Swiss EMS-Chemie Holding and British asset management firm Hargreaves Lansdown.
British energy services company John Wood Group, which had been seen as another likely addition, did not make it, with traders blaming the disappointment for the 5 percent drop in its share price.
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