In today’s briefing:
- ESR Group (1821 HK): Inching Closer to a Binding Proposal
- EQD | Asia Monthly Vol Roadmap: Elevated IV’s in CSI300 and Hang Seng Present Tactical Opportunity
- EQD / NSE Vol Update / Skew & Smile Unmoved by Equity Selloff – Options Market Ill-Prepared for More
- Temasek’s USD1Bn+ Bite into India’s Booming Snack Food Sector.Top Listed Stocks to Watch
- Morning Views Asia: CIFI Holdings, Vedanta Resources
ESR Group (1821 HK): Inching Closer to a Binding Proposal
- ESR Group (1821 HK) provided a positive update on the indicative proposal. The update notes that the consortium has expanded from three to six, representing 39.91% of outstanding shares.
- The addition of new consortium members is a positive. While the recent market rally is not a dealbreaker, it should give the consortium renewed impetus to launch an acceptable offer.
- The downside to a deal break is low as ESR’s valuation is undemanding, which is supported by the potential earnings recovery in a more benign interest rate environment.
EQD | Asia Monthly Vol Roadmap: Elevated IV’s in CSI300 and Hang Seng Present Tactical Opportunity
- Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.
- NIFTY Index (NIFTY INDEX) , S&P 500 INDEX (SPX INDEX) and S&P/ASX 200 (AS51 INDEX) implied vols are on the low end of what is typically realized in October.
- Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.
EQD / NSE Vol Update / Skew & Smile Unmoved by Equity Selloff – Options Market Ill-Prepared for More
- Nifty50 Monthly IVs post +2.6 vol jump as risk premia gets marked higher on return from 02.10.2024 holiday – China-induced Index selloff & FII Options-buying being the main drivers.
- Vol Term-Structure has switched from Contango to Backwardation in the front end for Nifty50 options. BankNifty Vol Curve flattens due to 11th hour IV markdown.
- Options Market looks ill-prepared for another leg lower in indices – Smile & Skew subdued in spite of IV-jump.
Temasek’s USD1Bn+ Bite into India’s Booming Snack Food Sector.Top Listed Stocks to Watch
- Temasek Holdings Pte Ltd (TMSK SP), Singapore’s state investment firm, is reportedly eyeing a 10-15% stake in India’s top snack maker Haldirams (Unlisted), valued at $11 billion.
- India’s packaged and processed food sector is booming, driven by modern retail growth, improved food standards, rising convenience demand, and greater affordability.
- Big acquisitions, upcoming IPOs, and strong growth prospects keep this sector in the spotlight, with listed companies offering investors opportunity to play the upswing.
Morning Views Asia: CIFI Holdings, Vedanta Resources
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.