In today’s briefing:
- HDFC/HDFC Bank Mega Merger: Index Implications as We Near Completion
- Quiddity Leaderboard ES50 Sep 23: Vonovia Deletion Seems Likely; US$1.2bn Flow for Wolters Kluwer
- Vonovia: To Sell €1bn Residential Portfolio
- M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
- Quiddity Leaderboard for SET50 Jun 23: TLI Vs BLA Pair Trade Seems Interesting
HDFC/HDFC Bank Mega Merger: Index Implications as We Near Completion
- Foreign shareholding has dropped in HDFC Limited and increased in HDFC Bank – the net effect is an increase in foreign room to just north of 18%.
- The merger is expected to complete in Q2/Q3 when there will be buying from MSCI trackers. There will be adhoc inclusions to the NIFTY, Nifty Next 50 and SENSEX indices.
- HDFC Limited (HDFC IN) trades 1.39% below the merger ratio with HDFC Bank (HDFCB IN) and also at a lower price to book.
Quiddity Leaderboard ES50 Sep 23: Vonovia Deletion Seems Likely; US$1.2bn Flow for Wolters Kluwer
- The EURO STX 50 Index is one of the most highly-tracked indices in mainland Europe and the annual index review takes place in September.
- Historically, these Rebalance events have had significant volume and ADV impact and they generally involve large cap names.
- In this insight, we take a look the names leading the race to become ADDs/DELs for the upcoming index review in September 2023.
Vonovia: To Sell €1bn Residential Portfolio
- Vonovia to sell €1bn residential portfolio to US investor Apollo.
- The transaction could have a signal effect on the struggling German real estate market
- Share price is +13% since our initial note. This could be just the beginning of share price appreciation
M&T Bank Corporation: Initiation of Coverage – Playing The Rate Hike Well And Creating An Investor Safe Haven – Key Drivers
- This is our first report on a regional lender that played the rate hike well with its high-quality deposit base – M&T Bank Corporation.
- Their interest-bearing bank deposits decreased from $41.9 billion to under $25 billion due to their repositioning the balance sheet to use surplus cash.
- We initiate coverage on the stock of M&T Bank Corporation with a ‘Buy’ rating.
Quiddity Leaderboard for SET50 Jun 23: TLI Vs BLA Pair Trade Seems Interesting
- In this insight, we take a look at the potential ADDs/DELs for Thailand’s SET50 index rebalance in June 2023.
- I currently see 2 ADDs and 2 DELs but the next-in-line names are lurking close to the border.
- Thai Life Insurance (TLI TB) is one of these potential ADDs and there might be an interesting pair trade against Bangkok Life Assurance (BLA TB) for the next few weeks.
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