Daily Brief Financials: Korea Stock Exchange Kospi Index, Union Bank Of India, BGC Group , HSBC Holdings and more

• NPS abruptly joins ‘Corporate Value Up Program’, plans to select three asset managers. Deadline: this month’s 29th; results: March 19th, possibly linked to Korea Premium Index ETF launch in mid-May.
• The document outlines guidelines, allocating 90-100% to value stocks, with KOSDAQ under 20%. While benchmarked to the internally-built index, it will likely focus on Korea Premium Index and KOSDAQ Global.
• The fund size is crucial. NPS will disclose details later. But still, there is considerable room to this year’s ceiling for local equity; a significant amount could flow into this.

• Union Bank Of India (UNBK IN) is looking to raise up to INR 30bn (US$362m) with the floor price set at INR 142.78/share and a maximum discount of 5%.
• The stock has run up a lot and with index inclusion around the corner, this is as good a time as any to issue stock.
• Union Bank Of India (UNBK IN) trades cheaper than peers and could continue to outperform over the near-term.

• Union Bank Of India (UNBK IN) is looking to raise up to US$370m (INR30bn) via its QIP.
• The company last undertook a QIP in Aug 2023, which we covered in Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong.
• This deal too is a very well flagged one, with the firm having earlier reported that it would look to do a QIP to boost its free float and capital.

Key points

• Previous VIC writeup accurately predicted BGC’s stock performance and highlighted key factors such as historical developments, valuation, and potential catalysts
• Minimal feedback received on previous writeup, but insights proved valuable as stock outperformed
• New writeup aims to provide more detail, updates, and analysis to support case for BGC’s potential growth, currently the largest position for the author.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• In the most recent quarters HSBC saw its NIM decline from around 1.7% to 1.5%
• As the bank de-risks its CRE lending it is left with a greater proportion of bad CRE loans
• There can be more significant impairment charges on BoCom, the USD3bn done was small