In today’s briefing:
- The BIGLY TOPIX April 2022 Rebalance – $20bn One-Way Split Over 3 Months
- Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, MSCI, ASX200, CSI300, HDFC/HDFCB, PPT/PDL
- Last Week in Event SPACE: Toshiba, Pendal, HDFC Bank, YZJ Shipbuilding, BHP, Virtus
- Asia-Pac Weekly Risk Arb Wrap: HDFC Bank/Limited Merger, Pendal, Jin Jiang Capital, Western Areas
The BIGLY TOPIX April 2022 Rebalance – $20bn One-Way Split Over 3 Months
- The TSE launched its new cash equity market structure earlier this week. The TOPIX Index changes include a one-off FFW Methodology Review, where results were announced today.
- The changes announced today go part-way to fixing float issues, but there will be follow-on changes in October, and one should expect companies to react with share cancellations.
- The big gainer in this TOPIX rebal is NTT (Nippon Telegraph & Telephone) (9432 JP). There are a fair number of “losers.” The 3-month total trade is about ¥2.3trln one-way.
Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, MSCI, ASX200, CSI300, HDFC/HDFCB, PPT/PDL
- The S&P/ASX 200 (AS51 INDEX) rebalance takes place at the close on Monday, 11 April with HomeCo Daily Needs REIT (HDN AU) replacing CIMIC Group Ltd (CIM AU).
- The review period for the MSCI May SAIR starts on 18 April. There will be adds/deletes, listing switches, and FIF changes (both big and small).
- There were big inflows to the iShares MSCI Emerging Markets (EEM US), Vanguard FTSE Emerging Markets ETF (VWO US) and iShares Core MSCI Emerging Markets ETF (IEMG US) ETFs.
Last Week in Event SPACE: Toshiba, Pendal, HDFC Bank, YZJ Shipbuilding, BHP, Virtus
- #2 shareholder and erstwhile activist 3D Investment Partners writes a letter to Toshiba Corp (6502 JP)‘s Board demanding 3 measures before the AGM.
- Pendal Group (PDL AU) is assessing Perpetual’s cash/scrip Offer provides an indicative price of $6.23/share; however, the wording in the announcement suggests the bid is opportunistic and will be rejected.
- Because of rising regulatory requirements for NBFCs, a HDFC Bank (HDFCB IN) /HDFC Limited (HDFC IN) was to be expected at some point.
Asia-Pac Weekly Risk Arb Wrap: HDFC Bank/Limited Merger, Pendal, Jin Jiang Capital, Western Areas
- There are 34 – mostly firm – transactions currently being discussed and analysed on Smartkarma.
- Two new deals were discussed on Smartkarma: HDFC Bank (HDFCB IN) / HDFC Limited (HDFC IN). Perpetual Ltd (PPT AU) and Pendal (PDL AU); Gold Road (GOR AU) and DGO Gold (DGO AU)
- Key updates took place for: Virtus Health (VRT AU), Jin Jiang Capital Company Limited (2006 HK) and Western Areas (WSA AU)
Before it’s here, it’s on Smartkarma