In today’s briefing:
- Stock Connect Changes and MSCI/FTSE Deletes on Friday
- PCOMP Index Rebalance Preview Feb 23: Higher Free Float Means Fewer Changes
- Toshiba (6502 JP): JIP’s Privatisation Bid Is Floundering
- FTSE China A50 Index Rebalance: Stock Connect Deletion to Drive Change
- Net Protections Holding IPO Lock-Up – PE Owner Is Free to Shed Its Remaining Stake
- EQD | SPX Index/NDX Index : Big Data Week Coming Up-We Look at What Is Priced In
- DAX, MDAX, SDAX Dec 2022 Rebal: DAX Inclusion for Porsche Is Positive News
- STAR50 Index Rebalance Preview: Another Five Potential Changes in March
Stock Connect Changes and MSCI/FTSE Deletes on Friday
- The SSE180, SSE380 and SZSE1000 indices rebalance at the close on Friday and that will lead to changes to the list of stocks eligible for Northbound Stock Connect.
- Deletion from the Northbound Stock Connect Buy and Sell list will result in MSCI and FTSE deleting stocks from their indices. That selling will take place at the close Friday.
- We expect 37 stocks to be deleted from the MSCI and FTSE indices at the close on 9 December – the announcements should be made later today or tomorrow.
PCOMP Index Rebalance Preview Feb 23: Higher Free Float Means Fewer Changes
- From December 2022, the minimum free float requirement to be a part of the Philippines Stock Exchange PSEi Index (PCOMP INDEX) increases from 15% to 20%.
- We see a high probability of DMCI Holdings (DMC PM) replacing Emperador (EMP PM) in the index at the upcoming rebalance.
- There are a few other potential changes to the index and the passive flow on the stocks will be material.
Toshiba (6502 JP): JIP’s Privatisation Bid Is Floundering
- JIP, Toshiba Corp (6502 JP)‘s preferred bidder, is reported to be under pressure from co-investors to cut its offer price. Securing financing continues to be troublesome.
- An offer valuing Toshiba less than JPY2.2 trillion would face pushback from the special committee, let alone shareholders. There are no signs of a JIC/Bain coming to the rescue.
- While the Toshiba/peers price ratio remains undemanding compared to historical ratios, Toshiba looks expensive vs peers on multiples. With short-term newsflow likely to be incrementally negative, remain on the sidelines.
FTSE China A50 Index Rebalance: Stock Connect Deletion to Drive Change
- Beijing-Shanghai High Speed Railway-A (601816 CH) will be deleted from the Northbound Stock Connect Buy and Sell list from the close on 9 December.
- Beijing-Shanghai High Speed Railway will be deleted from the SSE180, MSCI and FTSE indices. Plus a deletion from the FTSE China A50 Index (XIN9I INDEX).
- The replacement for Beijing-Shanghai High Speed Railway-A (601816 CH) will be determined at the close of trading today and the announcement will be made post market close.
Net Protections Holding IPO Lock-Up – PE Owner Is Free to Shed Its Remaining Stake
- Net Protections (7383 JP), a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
- As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
- In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.
EQD | SPX Index/NDX Index : Big Data Week Coming Up-We Look at What Is Priced In
- Next week is the last big week of data releases for the year
- With CPI data and also a FED meeting there is lots of potential volatility to come
- We look at what is priced in to the derivatives market and suggest some trade ideas
DAX, MDAX, SDAX Dec 2022 Rebal: DAX Inclusion for Porsche Is Positive News
- The December 2022 index changes for DAX, MDAX, and SDAX were announced late last night (5th December 2022).
- Porsche AG (P911 GR)‘s addition to the DAX Index is the main talking point. There are more changes for the MDAX and the SDAX indices.
- In this insight, we take a closer look at our expectations for index flows and potential trading ideas.
STAR50 Index Rebalance Preview: Another Five Potential Changes in March
- Nearly 85% of the way through the review period, we see 2 changes using a 12-month minimum listing history, and 5 changes using a 6-month minimum listing history.
- Given the significantly higher market cap of the inclusions using a 6-month minimum listing history, we expect the index committee will continue to use the shorter listing history requirement.
- With 5 changes a side, one-way turnover is estimated at 5.15% and will result in a one-way trade of CNY 3,994m. Impact on some deletions is quite high.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
