REA Group Limited (REA) Moves Up 0.08% on Feb 14

February 14, 2018 - By Jacob Smith

Shares of REA Group Limited (ASX:REA) last traded at 76.34, representing a move of 0.08%, or 0.06 per share, on volume of 134,156 shares. After opening the trading day at 76.35, shares of REA Group Limited traded in a close range. REA Group Limited currently has a total float of 131.71M shares and on average sees 188,323 shares exchange hands each day. The stock now has a 52-week low of 53.7 and high of 81.1.

This Is Why S&P/ASX 200 Is Up 4.7% For The Year

S&P/ASX 200 is a leading market index that features Australia’s top 200 companies ranked based on market capitalization. REA Group Limited is one of many involved in trades. The index first went online in April of 2,000 after inheriting all the data from All Ordinaries. The index does not have restrictions on the kind of companies that can be listed as long as one meets the minimum eligibility requirements.

ASX 200 Highs and Lows

Since its inception, the index all time high stands at 6828.70 points recorded in November 2007. The index boasts of an all-time low of 1358.50 points registered in November 1992 and inherited from All Ordinaries.

The index currently covers 80% of Australia’s equity market something that has made it a reliable tool for gauging the health of the country’s equity market. ASX 200 is also liquidperfect from addressing all kinds of investment needs for managers who need to diversity in their portfolio. Good liquidity of REA Group Limited attracted traders at the market.

S&P/ ASX 200 is market-capitalization weighted, meaning its rating can only move up or down, based price changes of stocks listed. Weighted points are not in any way affected by changes in market capitalization not tied to stock prices. Unlike other indexes, ASX 200 does to take into consideration-restricted stocks normally issued to strategic investor’s, governments or venture capitalists as these are deemed strategic holdings mostly considered log term investments.

Listing Requirements

Companies that would wish to be listed in the index must first have their shares listed on the country’s national bourse, the ASX. Liquidity of a stock is another factor that is usually taken into consideration prior to a company being listed. The index also ensures that no single company dominates trading.

Rebalancing of the index usually takes place every three months in a bid to ensure that all the stocks listed meet the minimum requirement. In the just concluded rebalancing carried out on September 16, 2016, six companies were dropped and consequently replaced by six others that had met the minimum requirement.

The index rebalancing is normally carried out by a five-panel ‘index committee’ with the next one slated for December 16, 2016. While rebalancing can reduce the number of stocks listed, the committee cannot list more than 200 companies. Fortunately, REA Group Limited is one of them.

Some of the sectors that feature prominently in the index include utilities, financials, and Healthcare. Financials account for a huge chunk of the index’s total weighted points, at 40% with the second one accounting for less than 20%. The index total equity capitalization on the other hand accounts for 80% of Australian Securities Exchange total capitalization.

ASX 200 Performance

The S&P ASX 200 is currently up by 4.7% for the year as institutional and retail investors continue to scramble for positions in some of the companies with solid growth prospects. Strong corporate governance is one of the reasons that most investors are showing strong interest in the country’s top tier companies most of which are listed in the ASX 200.

Australia also boasts of one of the lowest interest rate environment in the developed world seen as a key drawer of investments from investors abroad. Companies like REA Group Limited are the safe haven for many.

More notable recent REA Group Limited (ASX:REA) news were published by: Livetradingnews.com which released: “REA Group Ltd (REA:AX) Bears in Favor” on February 11, 2018, also Fool.com.Au with their article: “3 alarming reasons to avoid REA Group Limited” published on January 17, 2018, Fool.com.Au published: “Is the REA Group Limited share price a buy?” on November 19, 2017. More interesting news about REA Group Limited (ASX:REA) were released by: Fool.com.Au and their article: “How safe is your money in REA Group Limited in 2018?” published on January 04, 2018 as well as Livetradingnews.com‘s news article titled: “REA Group Ltd (REA:AX) Heffx Technical Analysis” with publication date: January 24, 2018.

REA Group Limited provides advertising services to the real estate industry in Australia and Asia. The company has market cap of $10.06 billion. It advertises property and property-related services on Websites and mobile apps. It has a 217.49 P/E ratio. The firm operates Australian residential, commercial, and share property sites, such as realestate.com.au, realcommercial.com.au, and Flatmates.com.au; Chinese property site myfun.com; and various property portals in Asia.

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