Daily Brief Financials: PEXA Group, Nikkei 225, Samsung Kodex Banks ETF, Yanlord Land and more

• On Friday after the close, S&P DJI Indices announced that PEXA Group (PXA AU) would replace Pendal Group (PDL AU) in the S&P ASX 200 on 12 January at close.
• This is unsurprising. Pendal was scheduled to exit in January due to takeover. PEXA was already an interim S&P ASX 200 member after the distribution by Link Administration (LNK AU).
• The timing is conveniently in the timeframe for the LNK distribution of PXA shares to its shareholders implemented on the 10th. 

• Our biggest shift in Asia stems from reversing from short to long Japan and Taiwan. We have held a positive view in Australia and Thailand.
• SPX bounce call from 3,800 to 3,950, is lacking needed energy. Flat pattern wants to press lower post bounce and represents pullback risk in Asia as does an oversold USD.
• Asia longs are tactical in nature but have the ability to run into late January within the context of a larger degree Q1 equity bear cycle.

• Korea’s ETF market achieved top-line growth last year as well. AUM increased by 7% YoY, a significant achievement considering that global ETF AUM has shrunk by 8%.
• Since one-third of local ACTIVE ETFs are equity types (particularly SECTOR), we can conclude that the local equity ETF market has not shrunk but has migrated to ACTIVE.
• Recently listed sector ETFs are expected to play an accelerating role in expanding the scope of these arb opportunities as they expand beyond electric vehicles/secondary batteries to groups/defense.

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.

• Sands China
• SJM Holdings
• Yanlord Land