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>There are 38 adds/36 deletes for the JPX Nikkei 400 Index to bring the number of index constituents back to 400. There are stocks with multiple days ADV to trade.</li>
<li>Based on the adds, deletes and capping changes, we estimate one way turnover of 4.35% and a two-way trade of JPY 461bn (US$3.24bn).</li>
<li>There are a few stocks that will have same way flow from other index trackers within a few weeks of the JPX Nikkei 400 Index rebalance.</li>
</ul>


There are 38 adds/36 deletes for the JPX Nikkei 400 Index to bring the number of index constituents back to 400. There are stocks with multiple days ADV to trade.
Based on the adds, deletes and capping changes, we estimate one way turnover of 4.35% and a two-way trade of JPY 461bn (US$3.24bn).
There are a few stocks that will have same way flow from other index trackers within a few weeks of the JPX Nikkei 400 Index rebalance.


JPX Nikkei 400 Index Rebalance: Some Big Impact Names

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>The latest commercial census published this Spring shows that Japan's wholesale sector remains more dominant than in many other major economies, partly explaining the low margins in some retail sectors.</li>
<li>Wholesale sales fell 8% between 2016 and 2021, but were still 10% higher than in 2012 due to survey changes over the previous decade.</li>
<li>Consolidation of wholesaling into the hands of larger corporations, with correspondingly higher power within the supply chain, is increasing and opportunities for M&amp;A and margin growth are significant.</li>
</ul>


The latest commercial census published this Spring shows that Japan's wholesale sector remains more dominant than in many other major economies, partly explaining the low margins in some retail sectors.
Wholesale sales fell 8% between 2016 and 2021, but were still 10% higher than in 2012 due to survey changes over the previous decade.
Consolidation of wholesaling into the hands of larger corporations, with correspondingly higher power within the supply chain, is increasing and opportunities for M&amp;A and margin growth are significant.


Japan Specialist

Mark Chadwick

<ul>
<li>OVERSEAS.  EUR STOXX600 -1% as hikes, recession fears, overbought markets sap risk;  US-China Tensions Eases after Blinken China Trip; Ford Chairman Says US still can't Compete with China on EVs</li>
<li>JAPAN. NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off;  Interest in investing in Japan spreading to start-ups; Uniqlo headwinds-China, China</li>
<li>NUGGET. Nikkei reported that Japanese Retail (Mrs Watanabe) fx traders turned momentum in FX; Watch for when that happens in Equities...</li>
</ul>


OVERSEAS.  EUR STOXX600 -1% as hikes, recession fears, overbought markets sap risk;  US-China Tensions Eases after Blinken China Trip; Ford Chairman Says US still can't Compete with China on EVs
JAPAN. NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off;  Interest in investing in Japan spreading to start-ups; Uniqlo headwinds-China, China
NUGGET. Nikkei reported that Japanese Retail (Mrs Watanabe) fx traders turned momentum in FX; Watch for when that happens in Equities...


Ohayo Japan| Europe Sells Off; NUGGET: Mrs Watanabe-Now Momentum FX; Watch for Retail Equity Shift

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/redox-limited" target="_blank" data-smartkarma-citation="entities:39847:1" rel="noopener">Redox (RDX AU)</a>, a chemical and ingredients distributor, is looking to raise around US$270m in its Australia IPO. </li>
<li>In 2022 it was ranked as the largest chemicals and ingredients distributor in Australia, as well as the 13th largest in the Asia Pacific region and the 35th largest worldwide.</li>
<li>In this note, we will look at the company's past performance.</li>
</ul>



Redox (RDX AU), a chemical and ingredients distributor, is looking to raise around US$270m in its Australia IPO. 
In 2022 it was ranked as the largest chemicals and ingredients distributor in Australia, as well as the 13th largest in the Asia Pacific region and the 35th largest worldwide.
In this note, we will look at the company's past performance.


Redox IPO - Family Owned with a Long Track Record

Equity Bottom-Up

Pan Pacific International Holdings / Equity Bottom-Up

<ul>
<li>Itochu, Familymart, PPI (Don Quijote) and their data analytics partners have come together in the first case of cross-retailer ad platform development.</li>
<li>Itochu provides the central relationship that ties these companies together, and other deals are likely given the significant potential for retail media.</li>
<li>The opportunity for brands to market to these retailers’ customers through highly targeted ads will become ever more compelling, delivering new revenue streams for Donki and Familymart.</li>
</ul>


Itochu, Familymart, PPI (Don Quijote) and their data analytics partners have come together in the first case of cross-retailer ad platform development.
Itochu provides the central relationship that ties these companies together, and other deals are likely given the significant potential for retail media.
The opportunity for brands to market to these retailers’ customers through highly targeted ads will become ever more compelling, delivering new revenue streams for Donki and Familymart.


Itochu and Donki Tie on Retail Media to Create Major New Revenue Stream

Japan

Mitsubishi Corporation is a general trading company.  The Company has business groups such as New Business Initiatives, IT & Electronics, Fuels, Metals, Machinery, Chemicals, Living Essentials, and Professional Services.  Mitsubishi diversifies by satellite communications through a joint venture.

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Mitsubishi Corp (8058 JP)

JPX Nikkei 400 Index Rebalance: Some Big Impact Names

There are 38 adds and 36 deletes for the JPXNK400 Index. The adds have outperformed the deletes and there is a fair bit to trade on a lot of...

Brian Freitas

The State of Wholesaling in Japan

Getting a clear overview of Japan's wholesale industry is hard but every five years, Japan does a commercial census. The latest is just out, and we...

Michael Causton

Ohayo Japan| Europe Sells Off; NUGGET: Mrs Watanabe-Now Momentum FX; Watch for Retail Equity Shift

Europe DOWN; US out; NKY Futs -0.2% vs Cash; Japan likely starts on backfoot US out and European Sell off; Interest in investing in Japan...

Mark Chadwick

Redox IPO - Family Owned with a Long Track Record

Redox (RDX AU), a chemical and ingredients distributor, is looking to raise around US$270m in its Australia IPO. In this note, we will look at the...

Sumeet Singh

Itochu and Donki Tie on Retail Media to Create Major New Revenue Stream

Retail media is just emerging but will become a major source of new revenues for retailers in Japan thanks to their high footfall and customer...

Michael Causton

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