In today’s briefing:
- WisdomTree Emerging Markets SmallCap Dividend Index Rebalance: 45% Turnover & US$2.5bn to Trade
- Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures
- Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks
- WisdomTree Emerging Markets Ex-State-Owned Enterprises Index Rebalance: 16% Turnover, US$660m Trade
- Ingenia Communities Placement – Largest Shareholder Selling Isn’t Particularly Well Flagged
- SME Lender Funding Societies Nets US$27M Debt Funding
- The Progressive Corporation: Exclusive Inside Look into Policy Lifetime Performance! – Major Drivers
- The Travelers Companies Inc.: How They’re Changing the Insurance Landscape Amid Challenges! – Major Drivers
WisdomTree Emerging Markets SmallCap Dividend Index Rebalance: 45% Turnover & US$2.5bn to Trade
- The WisdomTree Emerging Markets SmallCap Dividend Index is a fundamentally weighted index that measures the performance of small cap stocks within Emerging Markets.
- The October rebalance will result in a one-way turnover of ~45% and in a one-way trade of US$1.24bn. There are ~300 stocks with over 1 day of ADV to trade.
- With only 4 trading days to implementation, there could be large moves on stocks with large flows and impact over the next few days.
Korea Finally Offers Reliable Data Channel on Companies with Improved Dividend Procedures
- The Obligatory Corporate Governance Report Disclosure System will stand as the only source for furnishing trustworthy data on the proportion of listed companies that have genuinely adopted enhanced dividend procedures.
- From a dividend strategy perspective, the companies of primary interest for strategic trading are predominantly those falling under the scope of this disclosure obligation.
- Next year, it’s anticipated that with dependable data, we will have the means to craft dividend strategies aimed at this specific group.
Huijin’s Increase in Shareholdings of the Big4 May Signal Temporary Bottoming of the Stocks
- Central Huijin, the sovereign wealth fund, increased their shareholding of the Big 4 banks in China on 11 October 2023
- Contrary to their last similar action, Huijin will increase its stakes in these banks over the next 6 months period, providing stabilizing force of the stock prices
- Worries on property sector, LGFV and the overall health of the economy have significantly depressed banking stocks.
WisdomTree Emerging Markets Ex-State-Owned Enterprises Index Rebalance: 16% Turnover, US$660m Trade
- The WisdomTree Emerging Markets ex-State-Owned Enterprises Index measures the performance of emerging markets stocks that are not state-owned enterprises.
- The October rebalance will result in a one-way turnover of ~16% and in a one-way trade of US$329m. There are 16 stocks with over US$3m to trade.
- HDFC Bank (HDFCB IN) will be added to the index while there will be selling in Taiwan Semiconductor (TSMC) (2330 TT).
Ingenia Communities Placement – Largest Shareholder Selling Isn’t Particularly Well Flagged
- Sun Communities (SUI US) is looking to raise A$165m (US$106m) via selling its entire stake in Ingenia Communities (INA AU).
- With the investor selling down its entire stake, the deal will be a large one for the firm to digest, with shares representing 32.9 days of three month ADV.
- While short covering could potentially provide some support for share price post-deal, the selldown here doesn’t seem particularly well flagged.
SME Lender Funding Societies Nets US$27M Debt Funding
- Southeast Asian SME digital finance platform Funding Societies (known as Modalku in Indonesia) has secured US$27 million in debt funding led by AlteriQ Global.
- Aument Capital Partners (ACP) and Orange Bloom also invested.
- The funds will be channelled via the fintech startup’s tailored financing solutions to support the underserved SME segments in its five markets.
The Progressive Corporation: Exclusive Inside Look into Policy Lifetime Performance! – Major Drivers
- The Progressive Corporation delivered a disappointing set of results as the company was unable to meet the revenue and earnings expectations of Wall Street.
- At the corporate level, these incidents have increased their combined ratio by 4.5 points, 1.7 points more than the impact catastrophe events had on their combined ratio in the first half of 2022.
- However, there are segmentation opportunities within the new-to-renewal loss ratio performance as not all policy characteristics at new businesses have the same predicted lifetime loss ratio performance.
The Travelers Companies Inc.: How They’re Changing the Insurance Landscape Amid Challenges! – Major Drivers
- The Travelers Companies, Inc. delivered a mixed set of results for the latest quarterly report, with revenues above analyst expectations but below-par earnings.
- The underlying profitability in the Business Insurance segment was particularly outstanding, with the underlying combined ratio improving by 3 points to an excellent 89.4%.
- The Personal Insurance segment saw a 2-point improvement in the underlying combined ratio, reflecting the proactive steps to enhance profitability.
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