In today’s briefing:
- Celltrion Pharm (068760 KS) Looks Frothy
- KRX New Deal Index Rebalance Preview: Changes with Flow & Impact
- NIFTY NEXT50 Index Rebalance Preview: Potential Adds Skyrocketing
- Avangrid (Iberdrola) Terminates Merger Agreement with PNM Resources
Celltrion Pharm (068760 KS) Looks Frothy
- After biopharmaceuticals developer and producer Celltrion Inc (068270 KS) recently completed its merger with Celltrion Healthcare (091990 KS), Celltrion Pharm (068760 KS) came (more) into focus.
- Pharma is now up ~37% since Inc and Healthcare merged.
- That’s quite a lot of expectation baked in. Probably too much.
KRX New Deal Index Rebalance Preview: Changes with Flow & Impact
- The review period for the March rebalance ends on 31 January, the changes will be announced early March and implemented at the close of trading on 14 March.
- There is one change currently for each of the Secondary Battery, Bio, Internet and Game indices. There are two changes for the BBIG Index.
- There will be big flow on Ecopro BM (247540 KS) and Posco Future M (003670 KS) and big impact on Douzone Bizon (012510 KS) and DearU (376300 KS).
NIFTY NEXT50 Index Rebalance Preview: Potential Adds Skyrocketing
- Nearing the end of the review period, we see 6 potential changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) using the current index methodology.
- Estimated one-way turnover is 13.9% resulting in a one-way trade of INR 26.9bn. There will be more than 1.5x ADV to sell on nearly all deletes.
- The potential adds have outperformed the potential deletes by 35% over the last two months and some stocks are looking extremely frothy.
Avangrid (Iberdrola) Terminates Merger Agreement with PNM Resources
- Iberdrola SA (IBE SM)‘s U.S. subsidiary Avangrid (AGR US) terminated its $8.3 billion deal for PNM Resources (PNM US) as it could not New Mexico regulatory approval by 31 December 2023.
- Iberdrola lost its patience but freed up €11.5 billion from that deal, together with €5.5 billion from assets sold to the Mexican Government. That’s a lot for inorganic growth.
- PNM, at 9.7x EV/Fwd EBITDA, is trading in line with comparables, thus on a multiples basis there should be limited downside to the share price.
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