Follow Up on the Last TSX Index Rebalancing

Back on November 3rd, I posted an article on the upcoming TSX Index rebalancing and the likely candidates for addition and removal.

Like I had mentioned back then, I had always wondered what kind of performance boost a stock gets when it's added to an index.

Some Key Dates to Keep in Mind:

November 2, 2007: National Post's FP Trading Desk publishes Yin Luo's predictions
December 14, 2007 : Standard & Poor's Announces Changes in S&P/TSX Canadian Indices
December 24, 2007: Changes Come Into Effect


So let's have a look at the five additions and their performance since mid-October 2007:

Aecon Group Inc. (ARE)
Allen-Vanguard Corporation (VRS)
Gold Eagle Mines Ltd. (GEA)
High River Gold Mines Ltd. (HRG)
Jazz Air Income Fund (JAZ.UN)

Aecon Group Inc. (ARE)

Gold Eagle Mines Ltd. (GEA)

High River Gold Mines Ltd. (HRG)

Jazz Air Income Fund (JAZ.UN)

Allen-Vanguard Corporation (VRS)

Many things can influence a stock and this example was only one instance so this was definitely not a scientific experiment so I'll let you come up with your own conclusion on the influence of having your stock added to the Index.