Aecon Group Inc T.ARE

Additional to the TMX

[Gabriel]

The average price appreciation when a company is added to the TMX typically varies, but studies suggest that stocks can see a short-term boost due to increased demand from index funds and passive investors.
 

Immediate Impact: Research indicates that stock prices can rise by 3-5% in the weeks following the announcement of inclusion. This is largely driven by index funds buying the stock to match the index, a phenomenon known as the “index inclusion effect.”

Post-Inclusion Behavior: After the initial spike, the price often stabilizes.

Factors Influencing Appreciation:

Liquidity: More liquid stocks tend to see smaller percentage increases because their shares are easier to buy without driving up the price.

Market Sentiment: A bull market or optimism about the sector can amplify gains.

Passive Investing: The growing influence of ETFs and index funds has heightened the impact of index inclusion on stock prices.

[nedstar71]

"Immediate Impact: Research indicates that stock prices can rise by 3-5% in the weeks following the announcement of inclusion. This is largely driven by index funds buying the stock to match the index, a phenomenon known as the “index inclusion effect.” Unfortunately Aecon sometimes moves that amount on a daily basis for no reason whatsoever.  Maybe the index inclusion

[Dibah420]

Back in June/July we took a 19% haircut, but that had an identifiable reason: a negotiated loss on a pending arbitration that surprised most of us.  Right now whatever "good news" eg inclusion in an important index,  executive changes at TTC seem to be having a negative effect. There are 3200 on the ask at  $27.58!  Trend is still downward. Time to set prudent bids

[ol_griz]

Possibly people booking profits plus shorting prior to the January inclusion in the index.  That would likely maximize the boost for the institutions buying or retail rebuying once the air clears.