Daily Brief Financials: Charter Hall, Abacus Group, Nikkei 225, China Jinmao Holdings and more

• There could be two deletes for the index in September. There are two other stocks that are close to the deletion threshold.
• Even if there are no constituent changes, there will be capping changes that will result in one-way turnover of around 2.7% and a one-way trade of A$51m.
• Short interest has been increasing on Charter Hall (CHC AU) and JB Hi-Fi Ltd (JBH AU) and could be partially driven by potential index deletions.

• There should be one deletion from the index in September. And there could be another deletion. And there will be capping changes for a few stocks.
• The index changes will lead to a one-way turnover of 2.12% resulting in a one-way trade of A$13m. There is only one stock with over A$5m to trade.
• Following the spinoff, Abacus Group (ABG AU) and Abacus Storage King (ASK AU) will be the lowest ranked index constituents and at risk of deletion from the index.

• The Nikkei 225 index closed up last week and it has a good probability to rise further this week: the MRM tool has identified the current pattern as “bullish”.
• Resistance targets are located past 33500, the index could reach that target this week.
• If the index rises for 3 weeks or more, it could breakout from the previous resistance range around 33700, and reach targets past 34000.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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• China Jinmao Holdings
• Road King Infrastructure