Monday 20 June 2016 4:59 pm

Apple shares could be about to fall further. Here’s why

Apple's stock could be about to fall further and its market capitalisation shrink by more than the $200bn it already has this year.

The annual reshuffle of the Russell Index is due to take place on Friday and Apple's movement means a bit of a change.

The tech firm's weighting is expected to be 27 per cent smaller this year, although it will remain the biggest company on the index, and there are fewer outstanding Apple shares, according to Reuters, down from 5.8bn to 5.5bn due to share buybacks.

Its weighting in the Russell 1000 is expected to shrink from 2.52 per cent to 2.77 per cent, according to Credit Suisse.

Apple's weighting specifically on the Russell 1000 growth index will undergo a change. Last year it was a 100 per cent growth stock, but this year, it has been reclassified as a 92 per cent growth stock and an eight per cent value stock.

Analysts at Credit Suisse believe around $1.3bn of Apple shares will be traded at market close on Friday as a result of these changes as funds pegged to the index are sold off to match the lower weighting and the new distribution across value and growth.

In contrast Google, which increased its market cap by 28 per cent since last year's re-jig, is expected to become the second largest on the index, leapfrogging Microsoft while Facebook and Amazon will enter the top 10.