In today’s briefing:
- FTSE Japan: Potential Inclusions in March Following TSE Restructure
- Introducing KRX Sector Indices: SK Square & Iljin Hysolus Deserve Attention for Rebalancing
FTSE Japan: Potential Inclusions in March Following TSE Restructure
- Stocks that migrated from the JASDAQ and Mothers Boards to the Standard Market in April will be eligible for inclusion in the FTSE All-World/All-Cap indices at the March 2023 SAIR.
- Currently, we see 4 potential inclusions to the All-World Index and 12 potential inclusions to the All-Cap Index. There are some close adds on market cap and liquidity.
- The potential adds underperformed the TOPIX Index from April to June, but there has been a significant outperformance since then.
Introducing KRX Sector Indices: SK Square & Iljin Hysolus Deserve Attention for Rebalancing
- The correlation and sensitivity between passive flow and price impact have been significantly high for adds/deletes. So, we need a basket-trade setup focusing on potential adds/deletes.
- We will see 12 changes for Semicon and 6 for Autos. Bank won’t present any change.
- SK Square and Iljin Hysolus are the most prominent names to join the KRX Sector Indices this time. They will have a passive impact of 2.03x and 3.97x ADTVs, respectively.
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