Gobbling itself to ruin

The house broker being biased - now that would be unusual. One must give reverence to those who pay the bills.

Gondola is included in the FTSE 250 Index. It was at the top of the reserve list at the latest quarterly reshuffle on 07 Dec but moved into the FTSE250 when Brambles moved up to the FTSE100 as Exel was deleted, following acquisition by Deutsche Post.

From the FTSE website:


FTSE 250 Brambles Industries will be deleted.

Gondola Holdings (UK B0LS7T0) will be added to the index with a shares in issue total of 134,678,196 and an investability weighting of 40%. 13 December 2005

FTSE250 constituents are as follows:



I'm not an expert but from limited experience trackers tend to buy ahead of inclusion so with Gondola being at the top of the reserve list I suspect that trackers may have already bought in. Note that the weighting is only 40%, which normally indicates that the number of free shares in issue is limited, implying limited liquidity. Thus the impact of Gondola on the index is reduced 2.5 fold and the tracker requirement would also be reduced.