In today’s briefing:
- And Now For Something Truly Offensive – Honda Pays <0.5x Book for Yachiyo
- Impact of Allowing Negotiated Block Trades for Eight Futures Spreads, Incl. SSF SP
- SENSEX Ad Hoc Rebalance: JSW Steel Replaces HDFC
And Now For Something Truly Offensive – Honda Pays <0.5x Book for Yachiyo
- Every now and then, you get a tender offer proposal which is truly offensive. This is one.
- Yes, existing ICE-related autoparts makers are under the cosh as they face down obsolesence induced by competition from EVs. Fuel tank makers like Yachiyo are at risk.
- But this bid started at <0.3x book, and ended at <0.5x book, despite significant net financial assets and lots of unrecognised DTAs.
Impact of Allowing Negotiated Block Trades for Eight Futures Spreads, Incl. SSF SP
- It is highly probable that SP trading will increase after July 31st, as this will provide a more conducive environment for the seamless rollover of large positions.
- Considering the actual impact on the market, we may have to pay more attention to the potential surge in trading volume for single-stock futures SP.
- We see a rise in aggressive position setups in event trading, including rights offerings. This may lead to a more substantial price impact by increasing the intensity of such trading.
SENSEX Ad Hoc Rebalance: JSW Steel Replaces HDFC
- Following HDFC Limited (HDFC IN)‘s delisting, JSW Steel Ltd (JSTL IN) will be added to the S&P BSE SENSEX Index (SENSEX INDEX EQUITY) at the close on 12 July.
- The change was largely expected, but passive trackers need to buy over 5 days of ADV and nearly 12 days of delivery volume of JSW Steel Ltd (JSTL IN) .
- The HDFC Limited (HDFC IN) delisting could help Wipro Ltd (WPRO IN) in avoiding deletion from the S&P BSE SENSEX Index (SENSEX INDEX EQUITY) in December.
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