Uncertainty remains over exactly how and when BlackRock will dispose of the shares.
A likely BlackRock sell-down of exchange traded funds (ETF) positions in Meridian Energy and Contact Energy is a “wonderful gift” from passive to active investors, according to Salt Funds Management head Matt Goodson, although uncertainty still surrounds the exact timing and mechanism of the disposals.
The likely share sale will result from a rebalancing and reweighting of S&P Global’s Clean Energy Index which includes the two Kiwi generators and is tracked by two BlackRock funds – iShares Global Clean Energy ETF (ICLN) and iShares Global Clean Energy UCITS ETF (INRG).
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It’s been a dull week so far, but things pick up starting today in case you’re falling asleep. The main event comes this afternoon with minutes from the last Federal Open Market Committee (FOMC) meeting last month. The minutes are being looked at as something that could give the market a catalyst one way or another.
What people really want to see in the minutes is whether there’s any hint of what’s to come over the next six months. You can pretty much bet every word will be parsed closely by market participants. The minutes could provide a good behind-the-scenes look at any debate that went on before Chairman Jerome Powell held his press conference and doubled down on the commitment to stay accommodative even when inflation starts showing up.
Market close: Travel stocks surge on transtasman bubble announcement
6 Apr, 2021 05:38 AM
4 minutes to read
Stocks benefiting from the introduction of a transtasman travel bubble rose sharply. Photo / Getty Images
NZ Herald
By: Graham Skellern
Further selling in Contact Energy and Meridian on the New Zealand sharemarket outweighed sharp gains in stocks benefiting from the introduction of a transtasman travel bubble. There was heavy trading in the leading energy renewable stocks as the offshore exchange trade funds rebalance their weightings in the S&P Global Clean Energy Index.
This resulted in the S&P/NZX 50 Index falling 87.82 points or 0.7 per cent to 12,400.48 on volume of 97.6 million share transactions worth $207.54 million. There were 74 gainers and 63 decliners over the whole market.
Renewable energy stocks begin final descent
Tuesday, April 6th 2021, 6:40PM
by BusinessDesk
The S&P/NZX 50 Index fell 87.83 points, or 0.7%, to 12,400.48. Within the index, 20 stocks fell, 19 rose and 11 were unchanged. Turnover was $193.2 million.
Meridian Energy dropped 5.9% to $5.25 and Contact fell 4.1% to $6.79. Both are included in S&P’s Global Clean Energy Index which was responsible for inflating their share prices in January.
The index builder has now moved to prevent similar liquidity shocks in the future by adding 70 new companies to the index and significantly reducing the weighting of the two Kiwi stocks.
Today, when the market reopened after the Easter weekend investors reacted to the Good Friday announcement and began selling and shorting the two stocks ahead of the rebalance.
ICLN Is Dominating YTD Inflows and It s Not Even Close etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.