In today’s briefing:
- Canon Buyback – 18th in a Row at the Same Size, But This Time With a Running Head Start
- S&P/ASX Index Rebalance Preview: Potential Changes, Impact, Shorts & Positioning
- StubWorld: China Everbright (165 HK) Trading Wide
- Quiddity Leaderboard NIFTY Sep 23: Some Interesting Long-Short Trades
Canon Buyback – 18th in a Row at the Same Size, But This Time With a Running Head Start
- Canon has conducted 18 buybacks in the last 15 years. Every single one has been the same size. And the parameter-setting and how they are executed is… particular.
- For those with Canon to execute, using the information about patterns may be helpful.
- For those interested in a trade, there may be one here.
S&P/ASX Index Rebalance Preview: Potential Changes, Impact, Shorts & Positioning
- The review period for the June rebalance of the S&P/ASX family of indices ends tomorrow and we expect two changes for the S&P/ASX 200 (AS51 INDEX).
- Impact of passive trading on the stocks varies between 4.3-11 days of ADV. Short interest on the potential adds is small while there are significant shorts on the potential deletes.
- We expect there is pre-positioning on at least three of the four stocks. In some cases that is small, while it could be a lot larger in other stocks.
StubWorld: China Everbright (165 HK) Trading Wide
- Fund manager China Everbright (165 HK)‘s implied stub and simple ratio (CEL / Everbright Securities Co (A) (601788 CH))) are at multi-year lows.
- Preceding my comments on China Everbright are the weekly setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Quiddity Leaderboard NIFTY Sep 23: Some Interesting Long-Short Trades
- 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 HDFC Limited (HDFC IN) – HDFC Bank (HDFCB IN) merger could complete earlier than previously expected, triggering intra-review index replacements.
- Separately, I have presented some interesting new trading ideas involving some of the index change candidates, and I discuss the status of pre-existing trade ideas.
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