In today’s briefing:
- HK Electric Investments (2638 HK): MSCI Deletion Could Mark a Bottom
HK Electric Investments (2638 HK): MSCI Deletion Could Mark a Bottom
- HK Electric Investments (2638 HK) will be deleted from the MSCI Hong Kong Index at the close on 28 February. This was largely expected.
- We estimate passive MSCI trackers will need to sell 172.3m shares (US$111m; 19.1 days of ADV to trade). That is a lot. But there are pre-positions on the stock.
- HK Electric Investments (2638 HK) has underperformed its peers and now trades at a lower price to book. There could be outperformance post the MSCI deletion.
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