In today’s briefing:
- Tokyo Gas (9531 JP) Mega Buyback Announced
- A Crash in 8 Korean Stocks Related to CFD Derivatives: Margin Call in Korea
Tokyo Gas (9531 JP) Mega Buyback Announced
- Five days ago, Tokyo Gas (9531 JP) announced a revision to earnings for the year to 31 March 2023. Today they reported results, and announced March 2024 guidance.
- The company also announced a buyback programme to spend up to ¥113 billion to repurchase up to 53mm shares (12.2% of TSO). ¥113 billion is a very specific number.
- With the price where it is, ¥113bn is “only” 9.6% of shares out but this is very interesting indeed.
A Crash in 8 Korean Stocks Related to CFD Derivatives: Margin Call in Korea
- The biggest story in the Korean stock market in the past three days has been the crash in 8 stocks related to CFD derivatives.
- As a result of the CFD related margin call selling, the following are the major impact on the 8 related stocks and the overall Korean stock market in our view.
- They include a) overshooting on the downside on 8 related names, b) negative impact on the major rechargeable battery names, and c) negative impact on the overall Korean stock market.
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