logo-loader
viewCarnarvon Petroleum Ltd

Carnarvon Petroleum into S&P/ASX 300 – AC8, BGL, PAR into All Ordinaries

The rebalance changes are effective at the open of trading on March 18, 2019.

Standard & Poors written on building
Some fund managers can only buy stocks once they reach a certain size and enter certain indices

Carnarvon Petroleum Ltd (ASX:CVN) has featured twice in the quarterly S&P Dow Jones Indices rebalance, entering the All Ordinaries (INDEXASX:XAO) and the S&P/ASX 300 (INDEXASX:XKO).

The company’s recent oil and gas discovery means that it is 1 of 10 companies added to the ASX 300 index.

WATCH: Carnarvon Petroleum advancing Dorado and Buffalo projects

Meanwhile, Auscann Group Holdings Ltd (ASX:AC8), Bellevue Gold Ltd (ASX:BGL), and Paradigm Biopharmaceuticals Ltd (ASX:PAR) have all been added to the All Ordinaries Index.

Additional to indices can be a catalyst for stocks

The addition to an index can create liquidity for stocks.

This is because certain larger institutional investors have rules for which stocks they can and can’t own in their portfolios.

An Australian fund manager, for example, might only be able to buy stocks that are big enough to be in the All Ordinaries or ASX 300.

There are also ETFs that track or mimick various indices, take the Vanguard Australian Shares Index ETF (ASX:VAS) for example, it seeks to track the return of the S&P/ASX 300 Index.

Because it seeks to track the ASX 300, this means it will now have to buy shares in Carnarvon because it is set to become a member of the ASX 300.

READ: AusCann Group appoints Teva Pharmaceutical executive as new CEO

READ: Bellevue Gold substantial holder Bank of Novia Scotia increases stake to 12.27%

READ: Paradigm Biopharmaceuticals moving towards phase 2/3 MPS clinical trial

Quick facts: Carnarvon Petroleum Ltd

Price: 0.3575 AUD

ASX:CVN
Market: ASX
Market Cap: $558.56 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Carnarvon Petroleum Ltd named herein, including the promotion by the Company of Carnarvon Petroleum Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Carnarvon Petroleum advancing Dorado and Buffalo projects

Carnarvon Petroleum Ltd (ASX:CVN) managing director Adrian Cook speaks to Proactive Investors following a successful $50 million capital raising last week. Cook discusses the Dorado project, detailing the company's plans and expectations for three wells. He also updates on the Buffalo...

on 18/2/19

2 min read