Praemium Limited (PPS) Is Yet to See Trading Action on Feb 14

February 14, 2018 - By Hazel Jackson

Shares of Praemium Limited (ASX:PPS) closed at 0.675 yesterday. Praemium Limited currently has a total float of 400.26M shares and on average sees 2.04 million shares exchange hands each day. The stock now has a 52-week low of 0.32 and high of 0.885.

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. Praemium 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 Praemium 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, Praemium 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 Praemium Limited are the safe haven for many.

More notable recent Praemium Limited (ASX:PPS) news were published by: Fool.com.Au which released: “Did you miss Praemium Ltd’s result yesterday? The share price is up 6.2% today” on February 13, 2018, also Fool.com.Au with their article: “Why I think Praemium Ltd looks set to keep growing in 2018” published on January 03, 2018, Fool.com.Au published: “Why the Praemium Ltd share price stormed to a record high today” on January 10, 2018. More interesting news about Praemium Limited (ASX:PPS) were released by: Fool.com.Au and their article: “Should you buy Praemium Ltd shares today?” published on October 22, 2017 as well as Fool.com.Au‘s news article titled: “Why the Praemium Ltd share price just hit a record high” with publication date: November 13, 2017.

Praemium Limited provides portfolio administration, investment platforms, and financial planning tools to the wealth management industry worldwide. The company has market cap of $270.18 million. It offers Praemium Portfolio, a portfolio reconstruction engine with a database of historic corporate actions across various equities. It has a 337.5 P/E ratio. The firm also provides WealthCraft that includes client relationship management, financial planning, administration, commission's management, investment research, and portfolio management; and Plum Software, which offers front-end client management and back-office systems to financial planners.

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