In today’s briefing:
- MSCI Korea Standard/Small Cap Rebalancing & Tradable Names
- Origin Energy: Brookfield’s Energy Transition Bet
- Seven & I Parts with Sogo & Seibu and Pockets ¥200bn
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (11 November 2022)
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (11 November 2022)
MSCI Korea Standard/Small Cap Rebalancing & Tradable Names
- In addition to Hyundai Mipo Dockyard and LG Energy Solution, it is worth noting that Krafton will also have a significant passive inflow.
- GS E&C can become a more focused flow trading target as it is an unexpected one that the market must have failed to notice.
- Since most deletions will have a relatively sizeable passive impact on considerable liquidity, building up a short position with a basket from now on wouldn’t be a flawed approach.
Origin Energy: Brookfield’s Energy Transition Bet
- Brookfield and EIG/MidOcean are Offering Origin Energy (ORG AU) shareholders $9.00/share, a 54.9% premium to last close, by way of a Scheme. The Offer is non-binding and indicative.
- Negotiations kicked off at $7.95 for the LNG developer in early August. Exclusive due diligence has been granted.
- A firm offer will be contingent on ACCC and FIRB approval. Such a takeover may actually play into the Albanese government’s future energy plans.
Seven & I Parts with Sogo & Seibu and Pockets ¥200bn
- Earlier today, Seven & I Holdings (3382 JP)’s board decided to sell the underperforming department store business Sogo Seibu to the SoftBank Group controlled Fortress Investment Group for around ¥200bn.
- The sale of Sogo & Seibu looks like a positive development from all angles, but it could be already priced in as the rumours were there from February 2022 onwards.
- Meanwhile, there are downside risks to Seven & I shares in the short term from falling gas prices and rising inflation in the US.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (11 November 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net inflowover the past week was ~US$0.26bn, split between Shanghai (+US$0.08bn) and Shenzhen (+US$0.18bn).
- The largest inflows were into Midea Group (000333 CH) and Shenzhen Mindray Bio-Medical Electronics (300760 CH). The largest outflows were in China Yangtze Power (600900 CH) and Kweichow (600519 CH).
Shanghai/Shenzhen Southbound Connect: Weekly Moves (11 November 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry
- Overall, the net inflow over the past week was ~HK$4.1bn, split (+HK$1.7bn) for Shanghai and (+HK$2.4bn) for Shenzhen.
- The largest inflows were in Tencent (700 HK) and Wuxi Biologics (2269 HK). The largest outflows were inKoolearn (1797 HK)and China Mobile (941 HK).
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