Daily Brief Financials: Apollo Global Management , K Bank, Bandhan Bank Ltd, Banco De Sabadell SA, iShares Russell 2000 ETF, USD, Primary Health Properties, Jafco Co Ltd and more

• The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
• In this insight, we take a look at the upcoming constituent changes in the run up to the September 2024 index rebal event.
• We expect two regular changes during September. More interestingly, a couple of SP500 members are working on spin-offs which could trigger some high-impact deletions over the next few months.

• FSS’s leaked IPO guidelines include new, highly attention-grabbing additions: specifically, the disclosure of extra information from the bookbuilding and lockup results not mentioned in May.
• Institutions submitting prices outside the indicative band must be disclosed by KRX investor type. Additionally, average placed price information for lockup-pledged investors must be disclosed.
• FSS will distribute new IPO guidelines this week and apply them from next month. Major IPOs like K Bank must disclose more detailed bookbuilding and lockup results, impacting trading dynamics.

• With the review period nearly complete, Canara Bank (CBK IN) should replace Bandhan Bank Ltd (BANDHAN IN) in the NSE Nifty Bank Index (NSEBANK INDEX) in September.
• Passive trackers will need to buy over 2 days of ADV in Canara Bank (CBK IN) while selling over 1 day of ADV in Bandhan Bank Ltd (BANDHAN IN).
• There is a strong possibility of Bandhan Bank Ltd (BANDHAN IN) being deleted from a global index in August and that could put the stock under even more pressure.

• Banco de Sabadell’s Q2 2024 results highlight strong performance, strategic progress, and effective capital management.
• Sabadell is currently trading at a 0.89x P/TBV (vs. 5-y 0.41x average), accurately representing its profitability and RoTE outlook. It is also trading at 7.5x Fwd P/E.
• BBVA’s takeover bid is unlikely to succeed unless BBVA enhances the share exchange ratio or includes some cash. Gross spread (1 BBVA x 4.83 SAB) is just 3.4%.

• Breadth has expanded significantly in recent weeks with the Russell 2000 (IWM) breaking above major 2.5-year resistance at $210; $210 is now critical support moving forward.
• Technology/Large-Cap growth/Nasdaq 100 (QQQ) has consolidated after getting extended, and with June 12 gap support on QQQ getting filled/breaking today, it appears this pullback is likely to continue.
• The SPX is breaking its 20-day MA. June 12th gap at 5375-5409 is potential support, but it appears a pullback in the SPX and QQQ may be headed to 5191/$449.

• Credit spreads have traded in a tight range despite various market events
• High yield spreads have tightened throughout the month
• Macro factors like growth, inflation, and Fed policies are more important for credit markets than the political environment

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Primary Health Properties’ (PHP’s) H124 results show continuing earnings and dividend growth, driven by rental income and underpinned by a low cost ratio and significantly fixed borrowing costs. With open market rental growth, covering two-thirds of rent roll, accelerating further, we forecast this to continue through FY26, which would mark 30 years of unbroken dividend growth.

• Revenue increased to JPY5.1bn (+7.3% YoY), with operating profit at JPY1.6bn (+171.7% YoY) and net income at JPY1.1bn (+32.6% YoY).
• Capital gains reached JPY2.5bn (+33.2% YoY), with JPY570mn from listed shares and JPY1.9bn from unlisted shares.
• Total investment in Q1 FY03/25 was JPY9.9bn, with JPY5.7bn for domestic VC investments and JPY4.2bn for the US.