In today’s briefing:
- TOPIX Rebalance: End-July Rebal Is $3.5bn One-Way – Some Big Sell Names
- TOPIX July Rebalance: Mercari Inclusion, FFW Changes, US$6.5bn To Trade
- Mercari (4385) – End-July TOPIX Inclusion Update
- Pan Pacific (7532) To Up Stake in Kanemi (2669) Through Partial Tender
TOPIX Rebalance: End-July Rebal Is $3.5bn One-Way – Some Big Sell Names
- The July-end TOPIX FFW Rebalance is larger than most expected, I believe.
- There should be US$3.5bn one-way, with only a couple of major buy names.
- Chugai Pharmaceutical (4519 JP), Canon Inc (7751 JP), Unicharm Corp (8113 JP), Kubota Corp (6326 JP), Asahi Group Holdings (2502 JP), and Shiseido (4911) are each US$170mm+ to sell.
TOPIX July Rebalance: Mercari Inclusion, FFW Changes, US$6.5bn To Trade
- Mercari Inc (4385 JP) will be added to the Tokyo Stock Exchange Tokyo Price Index Topix (TPX INDEX) at the close on 28 July.
- There are a lot of FFW changes, mainly reductions. This leads to large funding inflows on the large index stocks.
- We estimate the inclusion of Mercari and the FFW changes will lead to a one-way turnover of 0.56% leading to a one-way trade of JPY 442.23bn (US$3.25bn).
Mercari (4385) – End-July TOPIX Inclusion Update
- In mid-January, I wrote about Mercari’s likely TOPIX inclusion 4-5 months later. 4.5mos later, it had been included (Mercari (4385) TOPIX Inclusion, Finally… And It’s Bigger Than It Looks) .
- The publicly-visible announcement data often does not show TOPIX inclusion parameters. A little sleuthing gets you there.
- It’s still bigger than it looks, but some large holders have recently been selling.
Pan Pacific (7532) To Up Stake in Kanemi (2669) Through Partial Tender
- Pan Pacific International Holdings (7532 JP) has announced a Tender Offer on Kanemi Co Ltd (2669 JP) to buy out the remaining shares of its one-time co-owner, Familymart.
- The Tender Offer is for 11.83% of shares (ex-Treasury) at a 3% discount to last. It will get PPIH to near 40%, but together with friendlies, they own ~70%.
- There is a small but extraordinarily illiquid opportunity here. I’d avoid, but there is an interesting potential put option.
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