Daily Brief Financials: Nikkei 225, Bank Of Baroda, Korea Stock Exchange KOSPI 200, Agile Property Holdings, Ethereum and more

• Update on our top shorts as we get closer to our cover targets with some overlap.
• SPX and NDX secondary short cover levels and where to add back to longs.
• Minor new chart highs in store into mid-July with target adjustments.

• The investor spotlight is on the HDFC Bank-HDFC merger, and we continue to favour HDFC Bank with its positive passive investor momentum, premium returns and merger synergy potential
• Bank of Baroda, although not in the limelight like HDFC bank, is our value stand-out among the Indian bank peer group and it warrants increasing investor attention, in our view
• Bank of Baroda is delivering on improving asset quality and returns; the shares have positive momentum, and we see great value on its 1x PBV ratio to ROE of 15%

• The Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY) has been (mildly) falling for 4 weeks, it may be now ready to resume its multi-month uptrend.
• Friday July 7th would be a good time to enter this LONG trade at support prices between 337 and 333 (ideal range; it’s riskier below 333).
• Hedge your bets in case the market keeps falling more next week and the following (it shouldn’t… but it can).

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.

• Greentown China
• Yuexiu Property

• Three Arrows Capital famously blew up because of a series of bad trades, primarily Luna and GBTC.
• What happened to Luna is obvious: it went to 0 because of UST’s flawed peg maintenance mechanism.
• The GBTC situation was a bit more complex: “Grayscale allowed big investors like 3AC to purchase shares directly by giving Bitcoin to the trust.