Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/union-bank-of-india" target="_blank" data-smartkarma-citation="entities:546:1" rel="noopener">Union Bank Of India (UNBK IN)</a> is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.</li>
<li>The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.</li>
<li>
<a href="https://www.smartkarma.com/entities/union-bank-of-india" target="_blank" data-smartkarma-citation="entities:546:1" rel="noopener">Union Bank Of India (UNBK IN)</a> trades cheaper than peers and could continue to outperform over the near-term.</li>
</ul>



Union Bank Of India (UNBK IN) is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.
The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.

Union Bank Of India (UNBK IN) trades cheaper than peers and could continue to outperform over the near-term.


Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, and 200 Indices in the June 2024 index rebal event.</li>
<li>As things stand, there could be one index change for the SENSEX index. </li>
<li>There could be four ADDs/DELs for the BSE 100 index and four ADDs/DELs for the BSE 200 index.</li>
</ul>


In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, and 200 Indices in the June 2024 index rebal event.
As things stand, there could be one index change for the SENSEX index. 
There could be four ADDs/DELs for the BSE 100 index and four ADDs/DELs for the BSE 200 index.


Quiddity Leaderboard BSE/​​​​SENSEX Jun 24: Wipro SENSEX Deletion Possible

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

Equity Bottom-Up

<ul>
<li>Steady and strong profit is the key features of Power Finance and this is improving during FY24.</li>
<li>ROA expansion can continue to reach and possibly surpass the peaks of FY15 and FY16 with loan volume, contained costs, better credit metrics.</li>
<li>Recent quarterly data shows better loan volume and financial assets expanding more than financial liabilities, with credit costs in reverse.</li>
</ul>


Steady and strong profit is the key features of Power Finance and this is improving during FY24.
ROA expansion can continue to reach and possibly surpass the peaks of FY15 and FY16 with loan volume, contained costs, better credit metrics.
Recent quarterly data shows better loan volume and financial assets expanding more than financial liabilities, with credit costs in reverse.


Power Finance - Largest NBFC in India, Direct Focus on Power Infrastructure, Steady, Strong Returns

<ul>
<li>
<a href="https://www.smartkarma.com/entities/posco-dx-co-ltd" target="_blank" data-smartkarma-citation="entities:5198:1" rel="noopener">Posco DX (022100 KS)</a> continues to drop following its section transfer from the KOSDAQ market to the KOSPI market. Short interest in the stock nearly halved in December.</li>
<li>There were big net inflows to China ETFs with creations in <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> ETFs and redemptions in ETFs tracking the CSI 500 Index and CSI 1000 Index.</li>
<li>Creations continued in the <a href="https://www.smartkarma.com/entities/ishares-msci-emerging-markets-223f5da3-7054-4e4f-bc55-b7f0852c2581" target="_blank" data-smartkarma-citation="entities:31998:1" rel="noopener">iShares Emerging Markets ex China (EMXC US)</a> ETF with units outstanding reaching a new high.</li>
</ul>



Posco DX (022100 KS) continues to drop following its section transfer from the KOSDAQ market to the KOSPI market. Short interest in the stock nearly halved in December.
There were big net inflows to China ETFs with creations in CSI 300 Index ETFs and redemptions in ETFs tracking the CSI 500 Index and CSI 1000 Index.
Creations continued in the iShares Emerging Markets ex China (EMXC US) ETF with units outstanding reaching a new high.


Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

Equity Research Analyst - Long-Short

Raj S, CA, CFA

Artoval Advisors

Art’o’val stands for Art of Valuation. Artoval Advisors LLP is a professionally run advisory firm catering to various financial advisory services including Valuation, Investment Research, Training, Accounting, CFO Services and other ancillary services.

We are passionate about what we do and strongly believe in working with our clients as their extended teams. With Artoval Advisors as their trusted partner, our clients find it easy to achieve efficiency in service delivery without compromising on quality.

True Art of Valuation

<ul>
<li>
Bank Of Baroda (BOB IN)  has become the second-best PSU bank in India after SBIN, in terms of improvement in asset quality and profitability.</li>
<li>
Medium-Term ROE Forecast 16% to 18%; ROA &gt;1% consistently; Asset Quality problems receding; Strategy is to diversify loan book towards retail further and focus on improving efficiencies</li>
<li>
Despite the recent rally, P/BV is cheap at 0.9x FY25e for high teen ROE business. BOB can easily re-rate to P/BV of 1.3x FY25e in the near term</li>
</ul>



Bank Of Baroda (BOB IN)  has become the second-best PSU bank in India after SBIN, in terms of improvement in asset quality and profitability.

Medium-Term ROE Forecast 16% to 18%; ROA &gt;1% consistently; Asset Quality problems receding; Strategy is to diversify loan book towards retail further and focus on improving efficiencies

Despite the recent rally, P/BV is cheap at 0.9x FY25e for high teen ROE business. BOB can easily re-rate to P/BV of 1.3x FY25e in the near term


Bank Of Baroda (BOB IN): Initiating Coverage – Best Value Bet Among Indian Banks

India

Canara Bank Ltd. provides a full range of banking services throughout India. The Group's activities include retail banking, commercial and personal banking, investment management, treasury & NRI services, cash management and assorted ATM facilities.

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Canara Bank (CBK IN)

Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well

Union Bank of India is looking to raise INR 30bn (US$362m) via a QIP. The stock is near its highs and index inclusion is a week away. The stock...

Brian Freitas

Quiddity Leaderboard BSE/SENSEX Jun 24: Wipro SENSEX Deletion Possible

Wipro could be deleted from the SENSEX index in June 2024 and Coal India could become the replacement. There could be around three days of volume...

Janaghan Jeyakumar, CFA

Power Finance - Largest NBFC in India, Direct Focus on Power Infrastructure, Steady, Strong Returns

Power Finance is India's largest non-banking finance company, the only direct play on power infrastructure, including renewable energy, with good...

Daniel Tabbush

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Bank Of Baroda (BOB IN): Initiating Coverage – Best Value Bet Among Indian Banks

Bank of Baroda has become a great value pick among Indian Banks due to its strong earnings profile and incrementally improving asset quality.

Raj S, CA, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Union Bank of India (UNBK IN) Placement: Using Index Inclusion Well

Union Bank of India is looking to raise INR 30bn (US$362m) via a QIP. The stock is near its highs and index inclusion is a week away. The stock...

Brian Freitas

Quiddity Leaderboard BSE/​​​​SENSEX Jun 24: Wipro SENSEX Deletion Possible

Wipro could be deleted from the SENSEX index in June 2024 and Coal India could become the replacement. There could be around three days of volume...

Janaghan Jeyakumar, CFA

Power Finance - Largest NBFC in India, Direct Focus on Power Infrastructure, Steady, Strong Returns

Power Finance is India's largest non-banking finance company, the only direct play on power infrastructure, including renewable energy, with good...

Daniel Tabbush

Index Rebalance & ETF Flow Recap: HSCEI, HSCI, KRX New Deal, NIFTY50, NEXT50, CNXBANK

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

Bank Of Baroda (BOB IN): Initiating Coverage – Best Value Bet Among Indian Banks

Bank of Baroda has become a great value pick among Indian Banks due to its strong earnings profile and incrementally improving asset quality.

Raj S, CA, CFA

Quiddity Leaderboard BSE/SENSEX Jun 24: Wipro SENSEX Deletion Possible