In today’s briefing:
- What EOflow Insiders Are Saying on the Current Situation & An Objective Interpretation of It
- S&P/ASX 200 Index Adhoc Change: Light & Wonder (LNW) To Replace UMG
- WisdomTree Oct 2023 Rebalance (Wed, 18 Oct)
- Naspers: Discount to Prosus Market Value Reaches Narrowest Level Since Prosus Listing
What EOflow Insiders Are Saying on the Current Situation & An Objective Interpretation of It
- They said that EOflow has made a strategic decision not to raise any objections to the court’s injunction to temporarily suspend the sale and marketing activities of EOPATCH.
- They stated their commitment to making efforts to actively prove that they are not subject to KRX’s substantive delisting examination. Hence, they aim to resume trading from November 1st.
- They subtly hinted at a degree of caution, suggesting that the final agreement with Medtronic might undergo slight modifications to align with the outcome of this preliminary injunction.
S&P/ASX 200 Index Adhoc Change: Light & Wonder (LNW) To Replace UMG
- Shareholders have approved United Malt Group Ltd (UMG AU)‘s acquisition by Malteries Soufflet and UMG is expected to stop trading after the close on 17 October.
- United Malt Group Ltd (UMG AU) will be replaced by Light & Wonder (LNW AU) in the S&P/ASX 200 (AS51 INDEX) at the close on 17 October.
- This is a surprise and there is unlikely to be a lot of pre-positioning on Light & Wonder (LNW AU). Buy Light & Wonder (LNW US) during US hours.
WisdomTree Oct 2023 Rebalance (Wed, 18 Oct)
- The annual WisdomTree rebalance takes place next week Wednesday in the closing auction. Turnover on the JSE at the rebalance last year (20 Oct) was R30.6bn, 1.5 times the 5-day average.
There are several SA stocks being added to and deleted from the range of WisdomTree EM funds.
Our buy flow estimate for SA additions is R1.3bn, our sell flow estimate for SA deletions is R1.8bn. This excludes up and down weightings.
Naspers: Discount to Prosus Market Value Reaches Narrowest Level Since Prosus Listing
- In yesterday’s trading session, Naspers and Prosus followed the market lower leading up to and after the US CPI print (headline worse than expected, core inline).
- Naspers and Prosus closed 1.4% and 1.9% lower, reducing Naspers’ discount to Prosus’ market value to its narrowest level since Prosus listed. The discount closed at 10.4% (currently 10.9%).
- Naspers has outperformed Prosus by 2.2% during the last 3 trading days.
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