In today’s briefing:
- FTSE TWSE Dividend+ Dec 22 Quiddity Final Expectations: Crucial Shift in Tracking AUM a GAME CHANGER
- FTSE TWSE Taiwan 50 Index Rebalance Preview: Far Eastern Could Replace AUO
- Taiwan Div+ Index Dec22 Rebal Trade Up 6% So Far – Small Changes To Basket But HODL Til The End
- Daiei Kankyo Pre-IPO – Peer Comparison and Thoughts on Valuation
- Woodside Energy ADR: Initiation of Coverage – Business Strategy & Key Drivers
- Ready, Aim, Fire
FTSE TWSE Dividend+ Dec 22 Quiddity Final Expectations: Crucial Shift in Tracking AUM a GAME CHANGER
- In October 2022, FTSE Russell confirmed that the number of constituents in the FTSE TWSE Taiwan Dividend+ Index will be increased from 30 to 50 during the December 2022 Rebalance.
- Considering the combined effect of expected index changes and capping flows, there could be 27 potential inflows names and 28 potential outflow names with total one-way flow size of US$2.45bn.
- There are multiple names on both sides with several days of volume to trade.
FTSE TWSE Taiwan 50 Index Rebalance Preview: Far Eastern Could Replace AUO
- Today is the review cutoff and we expect Far Eastern New Century (1402 TT) to replace AU Optronics (2409 TT) in the FTSE TWSE Taiwan 50 Index in December.
- Passive Taiwan 50 trackers will need to buy nearly 6 days ADV on Far Eastern New Century (1402 TT) and sell 1.6 days of ADV on AU Optronics (2409 TT).
- There will be same way flows from the FTSE TWSE Taiwan Dividend+ Index trackers and will substantially add to the impact on the stocks.
Taiwan Div+ Index Dec22 Rebal Trade Up 6% So Far – Small Changes To Basket But HODL Til The End
- The Taiwan Div+ cutoff date for the data used to calculate the Dec 2022 rebalance was yesterday’s close. Janaghan Jeyakumar, CFA has published two updates.
- I recommended a long vs short basket on 26 October. So far that long vs short basket is +6.1%. I recommend adjusting the basket to new names and continuing.
- Historically, the pattern from cutoff to date to Inclusion and then Inclusion to Inclusion+20 is quite clean. I would not expect differently this time.
Daiei Kankyo Pre-IPO – Peer Comparison and Thoughts on Valuation
- Daiei Kankyo (9336 JP) , a waste management company, aims to raise around US$280m in its Japan IPO.
- Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business.
- In our previous note, we looked at the company’s past performance. In this note, we undertake a peer comparison and talk about valuations.
Woodside Energy ADR: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Australian Energy major, Woodside Energy.
- Increased production volumes and increased pricing resulted in an increase in sales volume.
- Woodland Energy to collaborate to secure a steady energy supply for Japan.
Ready, Aim, Fire
- Since the boom in 2020, SPACs have been instrumental in taking high-risk, technologically disruptive companies public.
- This includes space startups building rockets focused on carrying payloads to space, Quantum Computing firms creating solutions for challenging tasks, and a host of Electric Vehicle Makers looking to challenge Tesla’s crown in building environmentally sound vehicles.
- Texas-based True Velocity Ammo, which develops and markets composite-case ammunition, aims to disrupt the highly mature ammunition industry on the same scale as these other emerging firms, delivering lighter and more efficient solutions to the public and military.
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