Reuters - Hot Stocks

UPDATE 1-Stock trading spikes in annual Russell indices update

(Adds detail on Nasdaq exchange, link to final list)

By Noel Randewich

(Reuters) – U.S. stock trading volume spiked just before the close on Friday as money managers bought and sold shares to align their portfolios with the annual update of Russell’s widely tracked indices.

The Wall Street summer ritual, often the biggest trading day of the year, occurs when Russell Investments adjusts the component companies in its Russell 1000, 2000 and 3000 indexes to keep up with the rise and fall of U.S. corporations.

Russell previously announced a preliminary list of additions and deletions, and on Friday posted its final version.

BATS Global Markets data showed at least 10 billion shares changing hands on Friday, compared to the daily average so far this month of 6.1 billion.

Nasdaq said 787 million shares representing about $ 21.1 billion were executed at the closing cross for about 2,583 stocks listed on that exchange.

Investment funds with close to $ 5 trillion in assets benchmark their performance to Russell’s various indexes, while investment funds that passively track Russell’s indexes have another $ 835 billion.

Adjustments to the Russell 3000 include GoDaddy and Delphi Automotive joining the index, with Rubicon Technology exiting.

A rally in healthcare stocks over the past year also pushed a large portion of the sector into the Russell 1000 from the Russell 2000 small-cap index.

(Reporting by Noel Randewich; Editing by Chizu Nomiyama and Richard Chang)

Reuters: Hot Stocks

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