Why Kennedy-Wilson Holdings Was Rising Today
Shares of Kennedy-Wilson Holdings (NYSE: KW) were rising today, up 11.8% as of 12:54 p.m. ET.
The real estate investment company rose on news that it would be added to the S&P MidCap 400 index, in a big reshuffling of stocks within several S&P indexes. When a stock that wasn't part of a large index gets a lift to that index, either through its own outperformance or due to underperformance of larger stocks that are dropping out, the stock price usually gets a boost. This is because investors perceive demand for the stock will rise as some institutional investors are restricted to buy stocks within an index, or even just indexes themselves over individual names.
So while the uplift is nice, is there a more fundamental reason for optimism in KW?
Source Fool.com
