In today’s briefing:
- Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)
- FTSE All-World/All-Cap Index Rebalance: Watch Golden Agri-Resources & Delhivery
- Sapporo Holdings: Activist Investor, 3D Investment Partners Is Just A Few Steps From Turning Hostile
- Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play
- Lowering Tick Sizes for KOSPI & KOSDAQ Starting Next January
Hang Seng Index Dec22 Rebal – 3 IN, None Out (The March to 80 Continues)
- Hang Seng Index continues its march to 80 names, after which it will commence a march, or a slog, to 100 names in an effort to gain more comprehensive coverage
- Doing so will admit names which move to Hong Kong from New York and will make way for more dynamism and lower SOE weights.
- The three ADDs are Tingyi Holding (322 HK), China Resources Mixc Lifestyle Services (1209 HK), and Haier Smart Home Co Ltd (6690 HK) with a pro-forma combined weight just <1%.
FTSE All-World/All-Cap Index Rebalance: Watch Golden Agri-Resources & Delhivery
- For Asia Pacific, there are 2 adds to the FTSE All-World Index, 2 adds to the FTSE All-Cap Index and 2 deletions from the FTSE All-World Index.
- All changes are on expected lines. The one surprise is the non-inclusion of Rainbow Children’s Hospital (RAINBOW IN) to the All-Cap Index where it likely just failed investable market cap.
- Sungeel Hitech (365340 KS) is also an add to the KOSDAQ 150 Index at the close on 8 December, while there is a huge lock-up expiry for Delhivery (DELHIVER IN).
Sapporo Holdings: Activist Investor, 3D Investment Partners Is Just A Few Steps From Turning Hostile
- Following a couple of investor-activism campaigns against Toshiba Corp (6502 JP) and Fuji Soft Inc (9749 JP), Singapore-based Japan-focused activist investor, 3D-Investment-Partners seems to be turning its attention towards Sapporo.
- Earlier this month, 3D Investment Partners requested Sapporo’s outside directors to postpone the announcement of the new Medium Term Plan until they hear out opinions and new ideas from shareholders.
- We believe that there’s a chance that 3D Investment Partners could turn hostile as Sapporo Holdings (2501 JP) seems to be completely ignoring the activist investor’s requests and proposals.
Galaxy Entertainment Group: Its 4.5% of Wynn Shares Key if the Stock Is in Play
- In 2018, shortly after the departure of Wynn founder Steve Wynn, Galaxy bought 4.9% of his shares atUS$175. The shares have been under water. But a new player has entered.
- Gaming, restaurant and sports entrepreneur Tillman Fertitta has just bought 6.1% of Wynn shares setting up a possible play on the shares, or a total takeover move.
- There are three scenarios that could play bullish for Galaxy if Wynn is in play. All auger well for movement on the stock.
Lowering Tick Sizes for KOSPI & KOSDAQ Starting Next January
- KRX will lower the tick sizes for KOSPI and KOSDAQ starting next January to reduce actual transaction costs and increase market liquidity by attracting more high-frequency traders.
- KRX’s acceptance of the market’s long-standing demand at this point can be seen as primarily driven by the purpose of resolving the problem of reduced market liquidity.
- We need to design a setup that takes a tighter holding period of event and flow trading in the Korean local market from next year.
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