In today’s briefing:
- Alpha Generation Through Share Buybacks in Korea: June & July 2023
- KOSPI Size Indices – Plenty of Overlap With Other Index Flows
- Quiddity Leaderboard NIFTY Sep 23: 5 ADDs/DELs for NIFTY Next 50 Unless the Methodology Changes
- FXI Rebalance Preview: One Potential Change in September
- GS AM Consortium/ Kahoot!: Agreed Fair Offer
Alpha Generation Through Share Buybacks in Korea: June & July 2023
- In this insight, we discuss the alpha generation through companies that announced share buybacks in Korea in June and July 2023.
- We provide a list of 38 stocks in the Korean stock market that have announced share buyback programs in June and July 2023.
- The top four market cap stocks that have announced share repurchases include Celltrion Inc, Celltrion Healthcare, Hyundai Elevator, and SFA.
KOSPI Size Indices – Plenty of Overlap With Other Index Flows
- The review period for the September rebalance of the KOSPI Size Indices started 1 June and will end 31 August. The changes will be implemented at the close 7 September.
- We see 8 migrations from MidCap to LargeCap, 7 migrations from LargeCap to MidCap, 6 new adds to MidCap, and 16 migrations from SmallCap to MidCap.
- Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.
Quiddity Leaderboard NIFTY Sep 23: 5 ADDs/DELs for NIFTY Next 50 Unless the Methodology Changes
- In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY 100 indices in the September 2023 rebalance.
- The NIFTY Next 50 methodology was supposed to change in June 2023 but this has been kept on hold for now. This change could still take place before September 2023.
- In this insight, we take a look at our expectations for index changes under both the existing methodology and the proposed new methodology.
FXI Rebalance Preview: One Potential Change in September
- As of 24 July, there could be one set of changes for the iShares China Large-Cap (FXI) (FXI US) in September.
- There should be less than 1x ADV to buy on ZTE Corp H (763 HK) while there will be nearly 2x ADV to sell on Anhui Conch Cement (914 HK).
- Short interest has been inching higher on ZTE Corp H (763 HK) while it is barely moving on Anhui Conch Cement (914 HK) as the stock trades near its lows.
GS AM Consortium/ Kahoot!: Agreed Fair Offer
- Kahoot! ASA (KAHOOT NO) saw better times on the stock market during the pandemic. To revive fortunes, GS AM has enlisted top shareholders and offers NOK 35/share “best and final” price.
- This represents 29.1x EV/Fwd NTM EBITDA, 3.3% FCF yield. I believe the offer price is fair. Interloper risk seems low: a competing bid should come above NOK 38.5, surely overpaying.
- Spread is 0.74%/2.15% (gross/annualised, assuming settlement by 30 November). With better opportunities elsewhere, I would wait for the share price to come under NOK 34.5 to open a position.
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