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/mercari-inc" target="_blank" data-smartkarma-citation="entities:27149:1" rel="noopener">Mercari Inc (4385 JP)</a> will be added to the <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">Tokyo Stock Exchange Tokyo Price Index Topix (TPX INDEX)</a> at the close on 28 July.</li>
<li>There are a lot of FFW changes, mainly reductions. This leads to large funding inflows on the large index stocks.</li>
<li>We estimate the inclusion of Mercari and the FFW changes will lead to a one-way turnover of 0.56% leading to a one-way trade of JPY 442.23bn (US$3.25bn).</li>
</ul>



Mercari Inc (4385 JP) will be added to the Tokyo Stock Exchange Tokyo Price Index Topix (TPX INDEX) at the close on 28 July.
There are a lot of FFW changes, mainly reductions. This leads to large funding inflows on the large index stocks.
We estimate the inclusion of Mercari and the FFW changes will lead to a one-way turnover of 0.56% leading to a one-way trade of JPY 442.23bn (US$3.25bn).


TOPIX July Rebalance: Mercari Inclusion, FFW Changes, US$6.5bn To Trade

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>This essentially makes tankless water heaters. 73% of sales to 12/16 were domestic and 27% overseas, mainly in China. Last year sales and profits exceeded forecasts. Initially operating profit was forecast as Y7bn (+37%). It was revised up to Y8bn (+58%) but came in at Y8.9bn (+75%). This was largely due to a better domestic water heater business in 4Q. Sales had been expected to be flat but rose 4.6%. This year (12/17) on 3% sales growth (to Y219bn), operating profit is expected to be Y10bn…</p>

This essentially makes tankless water heaters. 73% of sales to 12/16 were domestic and 27% overseas, mainly in China. Last year sales and profits exceeded forecasts. Initially operating profit was forecast as Y7bn (+37%). It was revised up to Y8bn (+58%) but came in at Y8.9bn (+75%). This was largely due to a better domestic water heater business in 4Q. Sales had been expected to be flat but rose 4.6%. This year (12/17) on 3% sales growth (to Y219bn), operating profit is expected to be Y10bn…

Cheap with Some Overseas Growth, but Dull.

Japan

NORITZ CORPORATION manufactures and sells gas-fired bathes and hot water heaters.  The Company uses advanced technology to produce compact size products. Noritz also expands into system kitchen & bath, air-conditioning equipment, heaters, and other bath-related products.

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Noritz Corp (5943 JP)

TOPIX July Rebalance: Mercari Inclusion, FFW Changes, US$6.5bn To Trade

Mercari will be added to the TPX at the close on 28 July. There are a lot of FFW changes that will result in one-way turnover of 0.56% leading to a...

Brian Freitas

Cheap with Some Overseas Growth, but Dull.

This essentially makes tankless water heaters. 73% of sales to 12/16 were domestic and 27% overseas, mainly in China. Last year sales and profits...

Pearl Hill Advisors

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)