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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</div><div>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/xinyi-solar-holdings-ltd" target="_blank" data-smartkarma-citation="entities:318:1" rel="noopener">Xinyi Solar Holdings (968 HK)</a>, <a href="https://www.smartkarma.com/entities/lenovo-group-ltd" target="_blank" data-smartkarma-citation="entities:13359:1" rel="noopener">Lenovo (992 HK)</a>, <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/byd-co-ltd-h" target="_blank" data-smartkarma-citation="entities:20962:1" rel="noopener">BYD (1211 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a>, <a href="https://www.smartkarma.com/entities/china-pacific-insurance-group" target="_blank" data-smartkarma-citation="entities:6177:1" rel="noopener">China Pacific Insurance (2601 HK)</a>, <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>. Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.</div><div>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a>, <a href="https://www.smartkarma.com/entities/resona-holdings-inc" target="_blank" data-smartkarma-citation="entities:6841:1" rel="noopener">Resona Holdings (8308 JP)</a>, <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-lease-finance" target="_blank" data-smartkarma-citation="entities:1467:1" rel="noopener">Mitsubishi UFJ Lease &amp; Finance (8593 JP)</a> and <a href="https://www.smartkarma.com/entities/nsk-ltd" target="_blank" data-smartkarma-citation="entities:6309:1" rel="noopener">NSK Ltd (6471 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" data-smartkarma-citation="entities:16287:1" rel="noopener">ASICS Corp (7936 JP)</a>, <a href="https://www.smartkarma.com/entities/haseko-corp" target="_blank" data-smartkarma-citation="entities:748:1" rel="noopener">Haseko Corp (1808 JP)</a>, <a href="https://www.smartkarma.com/entities/cyberagent-inc" target="_blank" data-smartkarma-citation="entities:8197:1" rel="noopener">CyberAgent Inc (4751 JP)</a> and <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu Kosan (5019 JP)</a>. Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.</div><div>In Korea, short increased on <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/korea-united-pharm-inc" target="_blank" data-smartkarma-citation="entities:5207:1" rel="noopener">Korea United Pharm (033270 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a> and <a href="https://www.smartkarma.com/entities/korea-electric-power-corp" target="_blank" data-smartkarma-citation="entities:16:1" rel="noopener">Korea Electric Power (015760 KS)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/doosan-infracore-co-ltd" target="_blank" data-smartkarma-citation="entities:3982:1" rel="noopener">Doosan Infracore (042670 KS)</a>, <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>. </div><div>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/pegatron-corp" target="_blank" data-smartkarma-citation="entities:12852:1" rel="noopener">Pegatron Corp (4938 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a>, <a href="https://www.smartkarma.com/entities/yulon-motor-company" target="_blank" data-smartkarma-citation="entities:18249:1" rel="noopener">Yulon Motor Company (2201 TT)</a> and <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/au-optronics-corp" target="_blank" data-smartkarma-citation="entities:6704:1" rel="noopener">AU Optronics (2409 TT)</a> and <a href="https://www.smartkarma.com/entities/acer-inc" target="_blank" data-smartkarma-citation="entities:15726:1" rel="noopener">Acer Inc (2353 TT)</a>. </div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Xinyi Solar Holdings (968 HK), Lenovo (992 HK), JD Health (6618 HK), BYD (1211 HK) and Alibaba Group (9988 HK) while there was short covering on Tencent Holdings (700 HK), Xiaomi Corp (1810 HK), China Pacific Insurance (2601 HK), Sunny Optical (2382 HK) and CSPC Pharmaceutical Group (1093 HK). Shorts increased in Consumer Discretionary, Consumer Staples, Health Care and Information Technology, while shorts decreased in Communication Services, Financials, Real Estate and Industrials.In Japan, stocks that saw the most shorts were ENEOS Holdings (5020 JP), Mitsubishi UFJ Financial (MUFG) (8306 JP), Resona Holdings (8308 JP), Mitsubishi UFJ Lease &amp; Finance (8593 JP) and NSK Ltd (6471 JP) while shorts decreased on Toshiba Corp (6502 JP), ASICS Corp (7936 JP), Haseko Corp (1808 JP), CyberAgent Inc (4751 JP) and Idemitsu Kosan (5019 JP). Shorts increased in Financials, Energy, Health Care and Information Technology sectors, and decreased in the Industrials sector.In Korea, short increased on Amorepacific Corp (090430 KS), Korea United Pharm (033270 KS), LG Chem Ltd (051910 KS) and Korea Electric Power (015760 KS) while shorts decreased on Samsung Electronics (005930 KS), Doosan Infracore (042670 KS), Naver Corp (035420 KS) and SK Hynix (000660 KS). Stocks in Taiwan that saw the highest increase in shorts were Pegatron Corp (4938 TT), Unimicron Technology (3037 TT), Yulon Motor Company (2201 TT) and United Microelectronics Corp (2303 TT) while shorts were covered on TSMC (2330 TT), Yageo Corporation (2327 TT), AU Optronics (2409 TT) and Acer Inc (2353 TT). 

Asia Short Interest: Xinyi Solar, Alibaba, Tencent, ENEOS, Resona, Toshiba, Samsung, TSMC, Yageo

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

TSE Tokyo Price Index TOPIX / Technical Analysis

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE vs. EM ratio. The U.S. dollar (DXY) is currently trading near support within the 16-17 month uptrend channel. Technicals suggest the most likely scenario is for the DXY uptrend to continue and for support to hold -- which would likely result in EAFE reasserting as leadership.  In this publication we highlight attractive investment themes and individual ideas across developed markets, with special attention given to Japan, Germany, Sweden, Italy, Spain, and Switzerland.

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE vs. EM ratio. The U.S. dollar (DXY) is currently trading near support within the 16-17 month uptrend channel. Technicals suggest the most likely scenario is for the DXY uptrend to continue and for support to hold -- which would likely result in EAFE reasserting as leadership.  In this publication we highlight attractive investment themes and individual ideas across developed markets, with special attention given to Japan, Germany, Sweden, Italy, Spain, and Switzerland.

Developed Markets Strategy: Stick with Japan

Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

THE MAIN IDEA (Relative Value Approach in USD Terms)Long-Term Allocation (Strategic view) Relative Value vs MXAP in USD terms<ul><li>NIKKEI/MXAP: Long-term outperformance in progress.</li><li>HSI/MXAP: Long-term outperformance in progress/still expected.</li><li>HSCEI/MXAP: Bullish weekly indicators advocate for long-term HSCEI outperformance against MXAP.</li><li>ASX/MXAP: ASX outperformance challenged but not invalidated (testing key support at 26.00/25.50).</li><li>KOSPI/MXAP: Long-term outperformance still expected.</li><li>TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAP</li><li>Nifty/MXAP: Mixed elements. Neutral for now.</li></ul>Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD terms<ul><li>Previously bearish elements on KOSPI/ MXAP have now turned mixed, advocating for an upgrade from “Decrease Exposure” to “Hold”.</li><li>No change for the other countries: Outperformance remains expected for NKY, HSI, HSCEI and NIFTY as their respective ratios against MXAP bounced/ held above supports.</li><li>Maintain “Hold” ratings for ASX and TWSE.</li></ul>

THE MAIN IDEA (Relative Value Approach in USD Terms)Long-Term Allocation (Strategic view) Relative Value vs MXAP in USD termsNIKKEI/MXAP: Long-term outperformance in progress.HSI/MXAP: Long-term outperformance in progress/still expected.HSCEI/MXAP: Bullish weekly indicators advocate for long-term HSCEI outperformance against MXAP.ASX/MXAP: ASX outperformance challenged but not invalidated (testing key support at 26.00/25.50).KOSPI/MXAP: Long-term outperformance still expected.TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAPNifty/MXAP: Mixed elements. Neutral for now.Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD termsPreviously bearish elements on KOSPI/ MXAP have now turned mixed, advocating for an upgrade from “Decrease Exposure” to “Hold”.No change for the other countries: Outperformance remains expected for NKY, HSI, HSCEI and NIFTY as their respective ratios against MXAP bounced/ held above supports.Maintain “Hold” ratings for ASX and TWSE.

THE MAIN IDEA (Relative Value Approach in USD Terms) Long Term Allocation (Strategic view) Relative Value vs MXAP in USD terms • NIKKEI/MXAP: Long term outperformance in progress. • HSI/MXAP: Long term outperformance in progress/still expected. • HSCEI/MXAP: Bullish weekly indicators advocate for long term HSCEI outperformance against MXAP. • ASX/MXAP: Outperformance expected holding above long term support (from 2003). • KOSPI/MXAP: Long term outperformance still expected. • TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAP • Nifty/MXAP: Mixed elements. Neutral for now. Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD terms • Ratings unchanged for this week. • Outperformance still valid/ in progress for Japan, Australia and Taiwan. • Relative value remains mixed for Hong Kong, China, Korea and India, keep “Hold” ratings.Should you have any questions and wish to speak with one of our analysts, please don’t hesitate to contact us. Equity Asia: + (65) 6735 3040 or <a href="mailto:asia@bbsp.sg" target="_blank">asia@bbsp.sg</a>Access to this document is restricted to the use of the intended recipient designated by BBSP and may not be shared with others. Any unauthorised use, dissemination, distribution or copying of this document, in whole or in part, is strictly prohibited. This document is provided solely for information purposes. Under no circumstances is the information contained or referred to herein to be relied upon as constituting personal investment advice or construed as any offer or solicitation to buy or sell investments. While all reasonable effort has been made to ensure that the information contained herein is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such. BBSP does not undertake any obligation to update such information. All content, data, statements and other information are not warranted as to completeness or accuracy, are subject to change without notice, and should never prevent investors from using their own judgments. Investors are fully responsible for any investment or trading decisions they make.

THE MAIN IDEA (Relative Value Approach in USD Terms) Long Term Allocation (Strategic view) Relative Value vs MXAP in USD terms • NIKKEI/MXAP: Long term outperformance in progress. • HSI/MXAP: Long term outperformance in progress/still expected. • HSCEI/MXAP: Bullish weekly indicators advocate for long term HSCEI outperformance against MXAP. • ASX/MXAP: Outperformance expected holding above long term support (from 2003). • KOSPI/MXAP: Long term outperformance still expected. • TWSE/MXAP: Neutral at the moment, watching closely key level at (2.22 on ratio TWSE/MXAP) to surpass to confirm TWSE long-term outperformance vs MXAP • Nifty/MXAP: Mixed elements. Neutral for now. Mid Term Country Allocation (Tactical view) Relative Value vs MXAP in USD terms • Ratings unchanged for this week. • Outperformance still valid/ in progress for Japan, Australia and Taiwan. • Relative value remains mixed for Hong Kong, China, Korea and India, keep “Hold” ratings.Should you have any questions and wish to speak with one of our analysts, please don’t hesitate to contact us.  Equity Asia: + (65) 6735 3040 or asia@bbsp.sgAccess to this document is restricted to the use of the intended recipient designated by BBSP and may not be shared with others. Any unauthorised use, dissemination, distribution or copying of this document, in whole or in part, is strictly prohibited. This document is provided solely for information purposes. Under no circumstances is the information contained or referred to herein to be relied upon as constituting personal investment advice or construed as any offer or solicitation to buy or sell investments. While all reasonable effort has been made to ensure that the information contained herein is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such. BBSP does not undertake any obligation to update such information. All content, data, statements and other information are not warranted as to completeness or accuracy, are subject to change without notice, and should never prevent investors from using their own judgments. Investors are fully responsible for any investment or trading decisions they make.

APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/26073" target="_blank" data-smartkarma-citation="entities:26073:1">Katitas Co Ltd (8919 JP)</a> is looking to sell about US$308m worth of existing shares in its upcoming IPO. Selling shareholders are Advantage Partners, SMS AIV, JAPAN Ireland Investment Partners, Forty Three Investment Partnership, and AP Cayman Partners.In this insight, we will explore Japan's pre-owned home industry and how Katitas developed its niche, the company's past performance, and the impact of its recent acquisition. As usual, we will also run the IPO through our ECM framework.

Katitas Co Ltd (8919 JP) is looking to sell about US$308m worth of existing shares in its upcoming IPO. Selling shareholders are Advantage Partners, SMS AIV, JAPAN Ireland Investment Partners, Forty Three Investment Partnership, and AP Cayman Partners.In this insight, we will explore Japan's pre-owned home industry and how Katitas developed its niche, the company's past performance, and the impact of its recent acquisition. As usual, we will also run the IPO through our ECM framework.

Katitas IPO Review - No Discount for Reselling the Reseller of Pre-Owned Homes

Japan

HASEKO Corporation builds residential, commercial, and institutional buildings such as condominiums and office buildings.  The Company also operates real estate brokerage, leasing, and management businesses.  Additionally, Haseko provides construction consulting services.  The Company, through its subsidiaries, operates hotel and financial businesses.

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Haseko Corp (1808 JP)

Asia Short Interest: Xinyi Solar, Alibaba, Tencent, ENEOS, Resona, Toshiba, Samsung, TSMC, Yageo

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Developed Markets Strategy: Stick with Japan

Despite EAFE’s YTD outperformance relative to EM, EAFE and EM returns have generally been equal since August, shown by the stalemate in the EAFE...

Vermilion Research

BBSP - Equity Asia Weekly Research

THE MAIN IDEA (Relative Value Approach in USD Terms)Long-Term Allocation (Strategic view) Relative Value vs MXAP in USD terms NIKKEI/MXAP:...

BBSP Asia

BBSP ASIA Equity - 14 March 2018

THE MAIN IDEA(Relative Value Approach in USD Terms)Long Term Allocation (Strategic view) Relative Value vsMXAP in USD terms• NIKKEI/MXAP: Long term...

BBSP Asia

Katitas IPO Review - No Discount for Reselling the Reseller of Pre-Owned Homes

Katitas Co Ltd (8919 JP) is looking to sell about US$308m worth of existing shares in its upcoming IPO. Selling shareholders are Advantage...

Zhen Zhou, Toh

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52-week Range

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