Tesla Inc.’s was among the biggest drags on the S&P 500 in its first day of trading on the benchmark.
The electric-vehicle maker, which is now ranked as one of the heaviest-weighted stock and represents 1.6 per cent of the index, fell as much as 6.3 per cent as it retraced gains from Friday when tens of millions of shares were purchased by index-fund managers. The S&P 500 fell as much as 1.9 per cent.
Institutional buying of Tesla surged late Friday as index-tracking managers rushed to add the shares to their funds. Almost US$60 billion worth of stock changed hands at US$695 a share, most of it in one giant trade in the session’s waning seconds. The price was about five per cent higher than Tesla’s level just prior to the close. More than US$150 billion worth of Tesla shares traded on Friday, ahead of the index inclusion.
Other electric vehicle companies, whose shares have gained significantly over the past month after the S&P 500 inclusion was announced, were also weak on Monday. Some of the biggest declines came from Nikola Corp., Electrameccanica Vehicles Corp. and Workhorse Group Inc.
Tesla has catapulted 731 per cent this year in anticipation of the historic inclusion, making it the biggest company ever to be added to the benchmark. The EV pioneer also joined the S&P 100, replacing oil and gas firm Occidental Petroleum Corp.
“There is strong precedence for positive returns for stocks prior to S&P 500 inclusion and post announcement, but very limited precedent for near term out performance post inclusion,” Sanford C. Bernstein analyst Toni Sacconaghi wrote in a note earlier this month.
--With assistance from Beth Mellor and Richard Richtmyer.
https://news.google.com/__i/rss/rd/articles/CBMiW2h0dHBzOi8vd3d3LmJubmJsb29tYmVyZy5jYS90ZXNsYS1zbGlkZXMtb24tZmlyc3QtZGF5LW9mLXRyYWRpbmctb24tcy1wLTUwMC1pbmRleC0xLjE1Mzk0OTHSAQA?oc=5
2020-12-21 16:30:46Z
52781257898557
Tidak ada komentar:
Posting Komentar