In today’s briefing:
- MSCI Korea May QCIR: Potential Adds, Deletes & ‘Extreme Price Increase’ Triggers
- Selected European HoldCos and DLC: March’23 Report
- HK Buybacks Q1 2023: 8 Names Are 90% of the Total – AIA, Tencent, StanChart, Greatwall the Big 4
- Mincor Backs Wyloo’s Offer After BHP Offtake Uncertainties
MSCI Korea May QCIR: Potential Adds, Deletes & ‘Extreme Price Increase’ Triggers
- Based on closing price from 3 April, we forecast 5 adds and 4 deletes for the MSCI Korea Index at the May QCIR.
- Three of the adds are close to triggering the extreme price increase criteria – if triggered, index inclusion could be deferred to a subsequent index review.
- Retail investors have been buying three of the potential adds, while foreign investors have taken the lead on two. Foreign investors have been sellers on all the potential deletions.
Selected European HoldCos and DLC: March’23 Report
- Discounts to NAV of covered holdcos have shown mixed performance during March, with spreads widening until short after the UBS/CS deal, now tightening.
- Discounts to NAV: C.F.Alba, 51.2%; GBL, 35.8%; Heineken Holding, 14.6%; Industrivärden C, 11.1%; Investor B, 9.7%; Porsche Automobile Holding, 49.6%. The spread of Rio Tinto DLC widened to 18.9%.
- Recommended trades: Heineken Holding, Investor AB (long Investor B/short main holdings) and Rio DLC.
HK Buybacks Q1 2023: 8 Names Are 90% of the Total – AIA, Tencent, StanChart, Greatwall the Big 4
- In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.
- 8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter.
- A lot of the smaller companies doing buybacks were significant portions of their volume.
Mincor Backs Wyloo’s Offer After BHP Offtake Uncertainties
- Last week, Mincor Resources NL (MCR AU) said BHP Group Ltd (BHP AU) would not agree to amend off-take agreement specifications, and therefore would no longer accept lower-quality ore.
- Mincor subsequently withdrew its earnings guidance, and Wyloo Metals shortly followed by declaring its A$1.40/share unconditional on-market Offer best and final.
- This morning (4 April), Mincor released its Target Statement, and recommends shareholders accept the Offer from Wyloo.
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