In today’s briefing:
- Matched Order Fraud in Korea: Reason Behind Eight Stocks Hit Massively
- AAG (2686 HK): Pros & Cons Ahead Of Scheme Vote
- Mankind Pharma: IPO Details & Index Inclusion
- KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)
- Quiddity Leaderboard Singapore’s STI Sep 23: KDCREIT Facing Risk of Deletion
- CSI500 Index Rebalance Preview: Potential Changes as Review Period Nears Completion
Matched Order Fraud in Korea: Reason Behind Eight Stocks Hit Massively
- The local ghost hedge fund began to excessively invest in credit, which leveraged 2.5 to 3 times when the eight manipulated stocks started to increase rapidly in price.
- Then, the Financial Supervisory Service deemed this excessively-leveraged trading behavior as unusual, and news of an investigation into their activities broke out and triggered them to dump the shares.
- The key now is identifying in advance the stocks that will experience similar selling patterns. To do so, we need to prioritize selecting stocks with high-margin balances in recent times.
AAG (2686 HK): Pros & Cons Ahead Of Scheme Vote
- We’re down to the pointy end of AAG Energy Holdings (2686 HK)‘s Scheme. And at a gross/annualised spread of 15.6%/318%, all is not well.
- The uncertainty is not without substance. A derisory Offer, one that is rejected by a proxy advisor; together with a silent, large shareholder no one seems to know.
- Shareholders go to the vote this Thursday, the 27th April. Currently trading 5% below the undisturbed price.
Mankind Pharma: IPO Details & Index Inclusion
- Mankind Pharma (6596876Z IN) is looking to raise up to US$526m in its IPO by selling 40.06m shares at a price range of INR 1026 to INR 1080 per share.
- The company has allocated 12.02m shares to anchor investors at INR 1080/share. That list includes marquee names and the lock-up reduces near-term float.
- The IPO opens on 25 April and will close on 27 April. Shares are expected to start trading on 9 May and there are no near-term index inclusions expected.
KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)
- With 3 trading days left in the review period for the June rebalance, we see 8 potential changes and 2 close adds for the KOSDAQ 150 Index (KOSDQ150 INDEX).
- There are two potential transfers from the KOSDAQ Market to KOSPI Market that could lead to more changes in May and/or June.
- Nearly all potential deletions are trading near their lows and short interest has been increasing on some of the stocks. That will be covered closer to implementation of the rebalance.
Quiddity Leaderboard Singapore’s STI Sep 23: KDCREIT Facing Risk of Deletion
- In this insight, we take a look at the potential index changes for Singapore’s ST index (“STI”) between now and the September 2023 index review.
- With roughly 4 more months left for the base date, Sembcorp Marine (SMM SP) seems to be an ADD but it is close to the border.
- Since the ranking system used for this index in based on prices as at a single point in time, the rankings could change significantly and our expectations could change too.
CSI500 Index Rebalance Preview: Potential Changes as Review Period Nears Completion
- With three trading days left in the review period for the CSI 500 Index (SH000905 INDEX) June rebalance, we forecast 50 changes at the close on 9 June.
- There is a big sector skew in the potential changes. We estimate a one-way turnover of 10.77% at the June rebalance resulting in a one-way trade of CNY 6.28bn.
- The potential adds have outperformed the potential deletes but there has been a big selloff in the last couple of weeks as the market has headed lower.
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