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>Earlier today, <a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a> made a conditional, non-binding indicative proposal for <a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a> to acquire 100% of the shares by way of a Scheme of Arrangement.</li>
<li>
<a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a> shareholders will receive 1 share of <a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a> for every 7.5 shares of PDL plus A$1.67/PDL share in cash.</li>
<li>This is a highly opportunistic offer and it is unlikely that <a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a>'s Board will support the proposal. There could be further improved proposals that come in. </li>
</ul>


Earlier today, Perpetual Ltd (PPT AU) made a conditional, non-binding indicative proposal for Pendal Group (PDL AU) to acquire 100% of the shares by way of a Scheme of Arrangement.

Pendal Group (PDL AU) shareholders will receive 1 share of Perpetual Ltd (PPT AU) for every 7.5 shares of PDL plus A$1.67/PDL share in cash.
This is a highly opportunistic offer and it is unlikely that Pendal Group (PDL AU)'s Board will support the proposal. There could be further improved proposals that come in. 


Perpetual's Indicative (& Opportunistic) Offer for Pendal Group: Details & Index Implications

<ul>
<li>A week ago, HRL Morrison made a non-binding, preliminary and highly conditional offer for <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a> at A$4.5/share in cash, subject to due diligence and other conditions.</li>
<li>
<a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a> traded up 10.7% today to A$4.67/share on high volumes and trading was halted an hour before market close.</li>
<li>News reports indicate that Macquarie Asset Management and PSP Investments are likely to make an offer at A$5/share. Expect an announcement in the next 24 hours.</li>
</ul>


A week ago, HRL Morrison made a non-binding, preliminary and highly conditional offer for Uniti Group Ltd (UWL AU) at A$4.5/share in cash, subject to due diligence and other conditions.

Uniti Group Ltd (UWL AU) traded up 10.7% today to A$4.67/share on high volumes and trading was halted an hour before market close.
News reports indicate that Macquarie Asset Management and PSP Investments are likely to make an offer at A$5/share. Expect an announcement in the next 24 hours.


Uniti Group (UWL): New Bidder in the Fray?

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.</li>
<li>Australia exhibits tough resistance near 7,200-50 to cap but we are fighting a stronger commodity cycle there.</li>
<li>Nikkei call to see a rejection at 27k to test 26,200 resolve. Korea displays a higher conviction break down from the rising wedge to short this uptick.</li>
</ul>


Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.
Australia exhibits tough resistance near 7,200-50 to cap but we are fighting a stronger commodity cycle there.
Nikkei call to see a rejection at 27k to test 26,200 resolve. Korea displays a higher conviction break down from the rising wedge to short this uptick.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has agreed to acquire <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.</li>
<li>At last closing prices, the deal values <a href="https://www.smartkarma.com/entities/sezzle-inc" target="_blank" data-smartkarma-citation="entities:30969:1" rel="noopener">Sezzle Inc (SZL AU)</a> at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.</li>
<li>
<a href="https://www.smartkarma.com/entities/zip-co-ltd-3708706d-4978-4e29-acbc-d9702b971da9" target="_blank" data-smartkarma-citation="entities:29126:1" rel="noopener">Zip Co Ltd (Z1P AU)</a> has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.</li>
</ul>



Zip Co Ltd (Z1P AU) has agreed to acquire Sezzle Inc (SZL AU) in an all-scrip deal where Sezzle shareholders will receive 0.98 shares of Z1P per shares of SZL.
At last closing prices, the deal values Sezzle Inc (SZL AU) at A$2.1658/share, a 21.7% premium to the last close and a 31.7% premium to 30 day VWAP.

Zip Co Ltd (Z1P AU) has also announced a A$148.7m fully underwritten institutional placement and a A$50m non-underwritten share placement plan to strengthen its balance sheet.


Zip to Acquire Sezzle: Buy Now, Pray Later?

<ul>
<li>Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into for a bigger decline.</li>
<li>SPX big risk break below 4,250 follows previous major support breaks in NDX, RTY and more recently Europe. 4,250 is now resistance to contend with on a bounce.</li>
<li>Australia, Korea and H shares presents places to add to short exposure followed by Taiwan and India (below 16,500). We have been short NKY, HSI and STI.</li>
</ul>


Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into for a bigger decline.
SPX big risk break below 4,250 follows previous major support breaks in NDX, RTY and more recently Europe. 4,250 is now resistance to contend with on a bounce.
Australia, Korea and H shares presents places to add to short exposure followed by Taiwan and India (below 16,500). We have been short NKY, HSI and STI.


Australia

The S&P/ASX 200 measures the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalization. Representative liquid and tradable, it is widely considered Australia's preeminent benchmark index. The index is float-adjusted. The index was launched in April 2000.

S&P/ASX 200 (AS51 INDEX)

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Uniti Group (UWL): New Bidder in the Fray?

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ASX and Korea Short Entries

Our recent insight on where to add to shorts outlined entry points in the ASX, Nikkei and Korea. Entry points are being met with updated charts.

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Where to Add to Shorts in Asia

Markets that have held up are now vulnerable in Asia. We expect selling to mount next week. Weakness today/tomorrow to see an uptick to short into...

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