The followed, loathed, loved, and hated OMXH25 (formerly HEX25, FOX) doesn’t have its own thread yet. In honor of Kemira and Tieto joining the index today as YIT and Amer dropped out, I thought the “twenty-five” should have its own thread.
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What do you think? Does the index club really have a long-term effect, and if so, how much? I was pleased when, after a long coma, Kemira finally started to wake up. Will joining the OMXH25 list have a long-term effect on the share price?
Now Kemira is showing 0.39% in the red, but by all accounts, the price should turn when index-linked funds are forced to buy.
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Yeah, as Uncle said earlier in another thread, index investing is brain death and the end of entertainment. But: you’ll always reach the returns of stock picking with it 
Uncle Masse, FA, teacher and mentor of the Silenced Mr. Index 
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I’m convincing myself that my next purchases will again be largely index-based. I’ll probably just follow new companies for the next few years, though I won’t sell my current ones.
Of course, my own mantra is that if I can keep up with the index through stock picking, I’m happy. This change in strategy is mainly due to getting a study place and Kela’s (Finnish Social Insurance Institution) negative attitude towards dividend income if you want to receive housing allowance. I’m curious to see what Kela will say about the stock savings account.
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Yes, those that enter the index get a boost (buys) and those that leave it get downward pressure (sells).
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I’m interested to hear at what stage Kemira and Tieto’s stock prices show signs of this from a TA perspective.
K is in my portfolio, T was at some point, but I sold it when I got fed up with its flatline chart. Not even the dividends warmed me up. There are so many livelier stocks in the software sector.
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Right. Index investing is not my thing. Like perfect diversification, where everything swings in different directions, but the portfolio doesn’t move anywhere.
To paraphrase a certain Masse: stock picking is fun, so fun in fact that you might even pay a little for it sometimes 
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The change only takes effect on August 1st, so we’ll have to wait to see the effects. Market makers have their own methods for how exchange operations are carried out.
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How much money in total is there in funds tied to the OMXH25 index? Seligson’s ETF has €250M and Nordnet’s Suomi Super has €220M. Are there any other big funds?
Blomma wrote last autumn about the Euro Stoxx 50:
“Stocks dropping out of a benchmark index on average have underperformed the respective gauge by 5.6 percent during the month before the announcement and another 3 percent between the announcement and the actual index change, data collected by LBBW analyst Uwe Streich show.”
However, at least €40B is tied up in Euro Stoxx 50 ETFs. Someone clever could calculate how much that €40B is compared to the Euro Stoxx 50 total market cap, and how much, for example, €500M is compared to the OMXH25 market cap. It’s also worth noting in Blomma’s comment that the biggest difference occurs even before index changes are announced.
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Probably generally known, but in addition to the Nasdaq operation, these involve other funds making similar changes to their portfolios. That’s why a stock’s inclusion in a major index is always a big factor that then causes movement. Today, however, Kemira and Tieto have seen some selling, as have most others 
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Sijoitustieto had a fun survey. Let’s ask the people here too.
In your opinion, what is the most overpriced stock on the Helsinki Stock Exchange?
- Elisa
- Kesko
- Kone
- Orion
0
äänestäjää
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{“content”:“I don’t really follow any of the above companies, only a little out of the corner of my eye, but I still answered based on my gut feeling: Elisa. I almost chose Kone to @Elina_A’s delight, but Elisa narrowly won with an under 4% dividend yield, P/E <24 and an almost negligible growth forecast. Kone has a similar flaw, plus the highest P/E, but megatrends and quality are still Kone’s backing. Kesko and Orion have a dividend % of even over 4 and P/E around 20x.”,“target_locale”:“en”}
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Oh well. Luckily, you didn’t 
I also voted for Elisa, and I think your reasoning was spot on.
What differentiates Kone from the other companies you mentioned is its top-3 position globally in the ‘people moving’ business. It’s one thing to be an important player in Finland and another to be a world-class player. Kone is king 
Where can I see the weightings of the OMXH25 companies?
Yep 
Btw, maybe a better wording would have been “least cheapest” or something instead of overpriced in the poll title. What’s overpriced for some might just be not-so-cheap for others.. But whatever.
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I’m interested too, just out of curiosity.
One way is to look at the contents of Seligson’s OMXH25 ETF. It’s not an exact replica because, for example, Kone has risen to a weight of 10.8% when the maximum weight of stocks in the actual index is 10%.
Or you could look at the market cap of the stocks, for example, from Kauppalehti and do the math yourself in Excel.
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My Excel showed the aggregated trailing 12-month operating profit declining for the past 4 quarters. When the trend changes, I might take a small slice.
Where can I see the index’s P/E and dividend yield?
Some data can be found at Bloomberg.com/quote/HEX25:ind. No information on how valid it is, but it’s probably pretty close to the truth.
The P/E on Bloomberg’s website is the average for the companies, so the number will probably change once the weightings are taken into account. The fund’s holdings may then differ somewhat from the index, so it’s a bit difficult to say exactly what the P/E is.