In today’s briefing:
- FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
- PCOMP Index Rebalance Preview Feb22: Three Potential Changes & Large Impact
FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
- The price review period for the FTSE All-World/All-Cap March 2022 SAIR ended on 31 December. The changes are expected to be announced on 18 February and implemented on 18 March.
- There are loads of potential inclusions to the index for China – a lot of the changes are a result of stocks being included in Northbound Stock Connect.
- There are stocks that are potential inclusions in other indices and will have additional passive inflows. Nongfu Spring could also be included in the FTSE China 50 and HSI indices.
PCOMP Index Rebalance Preview Feb22: Three Potential Changes & Large Impact
- We see three potential changes to the Philippines Stock Exchange PSEi Index (PCOMP INDEX) at the February rebalance. Two are higher probability changes, while one has a lower probability.
- Typically, the inclusions rally and the deletions drop between announcement and implementation with a big jump immediately post announcement. Pre-positioning prior to announcement is important.
- Bloomberry Resorts (BLOOM PM) and Robinsons Retail Holdings (RRHI PM) are reopening plays and investors that are looking to buy the stocks could wait for index deletion to get liquidity.
Before it’s here, it’s on Smartkarma
