In today’s briefing:
- S&P500 Index Rebalance: One-Way Trade of US$30bn
- Weekly Deals Digest (5 Jun): Link Admin, Cocoaland, Xiamen Port, Link Net, WM Motor, GOGOX, Yancoal
- Kakao Pay Shorting Entry Point: June 9 KOSPI 200 or June 17 FTSE?
- Merger Arb Mondays (6 Jun) – Xiamen Port, Link Admin, Cocoaland, Link Net, Australian Unity Office
- DAX, MDAX, SDAX, TecDAX June 2022 Rebalance: Encavis & Hensoldt Top Positives; Hypoport Top Negative
S&P500 Index Rebalance: One-Way Trade of US$30bn
- There are quite a few changes for stocks across the S&P 500 (SPX INDEX), MidCap 400 Index and SmallCap 600 Index that will result in a one-way trade of US$30bn.
- There are adds/deletes that have over 5 days of ADV to trade from passive funds, plus many stocks that have over +/-1 day of ADV from other changes.
- The largest impact of passive buying will be on Keurig Dr Pepper Inc (KDP US), On Semiconductor (ON US) and VICI Properties Inc (VICI US).
Weekly Deals Digest (5 Jun): Link Admin, Cocoaland, Xiamen Port, Link Net, WM Motor, GOGOX, Yancoal
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- On the ECM front, WM Motor Technology Co Ltd (WMT CH) filed for a US$1bn IPO and GoGoX Holdings (GOGO HK) aims to shortly launch a US$100-150m IPO.
- On the Event-Driven front, key developments at Xiamen International Port H (3378 HK), Link Net (LINK IJ), Link Administration Holdings (LNK AU), Yancoal Australia (YAL AU), Cocoaland Holdings (COLA MK).
Kakao Pay Shorting Entry Point: June 9 KOSPI 200 or June 17 FTSE?
- As for the FTSE rebalancing, when basket trading was not feasible, the individual trading setup of large-cap additions had a significantly lower win rate.
- Local tutes use the FTSE rebalancing as a selling opportunity. And this trading pattern of local tutes was particularly prominent in large-cap additions.
- I suggest avoiding flow trading for the additions this time. Kakao Pay? We should aim at the June 9 KOSPI 200 instead of the June 17 FTSE for shorting entry.
Merger Arb Mondays (6 Jun) – Xiamen Port, Link Admin, Cocoaland, Link Net, Australian Unity Office
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- This week, the highest spreads are Xiamen International Port H (3378 HK), Sezzle Inc (SZL AU), 21Vianet Group (VNET US), Link Administration Holdings (LNK AU), Alliance Aviation Services (AQZ AU)
- Lowest gross spreads are Yancoal Australia (YAL AU), Hwa Hong Corp (HWAH SP), Virtus Health (VRT AU), Irongate Group (IAP AU), Uniti Group Ltd (UWL AU), AKM Industrial (1639 HK).
DAX, MDAX, SDAX, TecDAX June 2022 Rebalance: Encavis & Hensoldt Top Positives; Hypoport Top Negative
- The index changes for DAX, MDAX, SDAX, and TecDAX were announced yesterday.
- Beiersdorf AG (BEI GR) will move from MDAX to DAX while Delivery Hero SE (DHER GR) will move from DAX to MDAX.
- Below is a closer look at the excess volume expectations and historical price and volume performance of the names involved in this Rebalance Event.
Before it’s here, it’s on Smartkarma
