In today’s briefing:
- Allkem + Livent = Arcadium : Updated Expected Index Flows
- HSCI Index Rebalance Preview and Stock Connect: Potential Changes in March
- KRX’s Mandatory English Disclosure Debut: A Detailed Guide on Utilizing This Without Confusion
- HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- Quiddity Leaderboard T50/100 Mar 24: Bizlink TDIV Deletion Very Close!
- End of Mandatory Lock-Up Periods for 41 Companies in Korea in January 2024
- NIFTY50 Index Rebalance Preview: One Change, Maybe Two, Low Probability of Three
- Quiddity JPX-Nikkei 400 Rebal 2024: End-Dec 2023
Allkem + Livent = Arcadium : Updated Expected Index Flows
- Allkem Ltd (AKE AU) saw its last day of trading on 21 December. There was large volume at the close as one major index provider gave it the boot.
- Another delayed their treatment at the last minute, and eliminated a cross-flow.
- But there is still a lot of net buy flow tomorrow (3 Jan) and the next day in the US. Perhaps more than I expected.
HSCI Index Rebalance Preview and Stock Connect: Potential Changes in March
- We see 30 potential adds (including plenty of new listings) and 28 potential deletes (on market cap and liquidity) for the Hang Seng Composite Index in March.
- We expect 26 stocks to be added to Southbound Stock Connect following the rebalance while 25 stocks could be deleted from the trading link and become Sell-only.
- There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.
KRX’s Mandatory English Disclosure Debut: A Detailed Guide on Utilizing This Without Confusion
- KRX’s lack of a standardized English translation platform may lead to non-standardized terminology and varying translation quality. KRX stresses cross-checking Korean and English disclosures due to potential errors.
- The 3-day lag between Korean and English disclosures poses timeliness challenges, requiring consistent cross-checking. Overall, the process for foreign investors using Korean market disclosure sites remains largely unchanged.
- The common procedure should still be to first check disclosures using English titles, then convert to Korean for reading. If English disclosures exist, utilize them for cross-checking.
HS Holdings (8699) – New Year, New Issues So Lots of Value But Buyer Beware!
- Under the requirements of the Amended Mongolian Banking Law (Feb 2021), Khan Bank (KHAN MO) needed to IPO. It did, and HS Holdings (8699 JP)‘s stake fell to 49.77%.
- It was de-consolidated. They were locked up for 6mos. The look-through financials are easier now. The company has bought back stock and trades at <0.5x book.
- But the Mongolian Banking Law required one more thing. All D-SIBs had to get all shareholders below 20% by 31 December 2023. It’s not clear that happened.
Quiddity Leaderboard T50/100 Mar 24: Bizlink TDIV Deletion Very Close!
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the March 2024 Index Rebalance.
- As things stand, I see one change for the T50 index and one more change for the T100 index.
- TDIV member Bizlink Holding (3665 TT) is very close to getting deleted from the T100 index and that could have significant TDIV flow implications too.
End of Mandatory Lock-Up Periods for 41 Companies in Korea in January 2024
- We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in January 2024, among which 4 are in KOSPI and 37 are in KOSDAQ.
- These 41 stocks on average could be subject to further selling pressures in January and could underperform relative to the market.
- Among these 41 stocks, top five market cap stocks include Posco International, Doosan Robotics, Rainbow Robotics, Qualitas Semiconductor, and PhilEnergy.
NIFTY50 Index Rebalance Preview: One Change, Maybe Two, Low Probability of Three
- Shriram Finance (SHFL IN) is a high probability add and UPL Ltd (UPLL IN) is a high probability delete at the NIFTY Index (NIFTY INDEX) rebalance in March.
- There is a lower probability of Bharat Electronics (BHE IN) or Trent Ltd (TRENT IN) replacing Bharat Petroleum Corp (BPCL IN) at the rebalance.
- Jio Financial Services (JIOFIN IN), Avenue Supermarts Ltd (DMART IN) and Zomato (ZOMATO IN) will enter the running once added to the F&O segment of the market.
Quiddity JPX-Nikkei 400 Rebal 2024: End-Dec 2023
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the rankings of the potential ADDs/DELs every month.
- Below is a look at potential ADDs/DELs for the JPX-Nikkei 400 Index Rebal to come in August 2024 based on trading data as of end-December 2023.
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