Industrials: Orient Overseas International, LG Corp, Calb, Apple and more

In today’s briefing:

MSCI May 2022 Index Rebalance: Flows at the Close Today & Performance So Far

For Asia Pacific, there are 48 adds/76 deletes for the Standard Indices and 166 adds/147 deletes for the Small Cap Index that will be implemented at the close today.
The adds have outperformed the deletes on average over the last few weeks/months. A long adds/short deletes trade performed better for Small Caps as compared to the Standard index.
There are a lot of stocks that will have same-way flow from other index trackers over the next few weeks and there could be a higher impact on these names.

The question now is whether this event can lead to a structural uptrend in LG Corp. I am skeptical about this.
LG Corp took a preemptive action to increase its attractiveness as a dividend stock to prevent a share price decline ahead of the listing of LG CNS.
However, this measure does not address the root cause of LG Corp’s massive NAV discount. So, I would consider a short position setup for LG Corp.

CALB aims to raise around US$1.5bn in its Hong Kong IPO.
CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products.
In this note, we will talk about the positive aspects of the deal.

Harding Loevner has been investing globally in high-quality, growing businesses based on disciplined industry research since 1989.
Stock markets fell in the quarter, as the world watched in horror Russia’s invasion of Ukraine.
While we are optimistic that China will maintain its neutrality in the war, we can’t dismiss the possibility we are wrong.
In recent years, as growth investors chased speculative and expensive“disruptive innovators” up, and more recently down, we have maintained a steady commitment to quality growth at steady premiums to the market over time.

Before it’s here, it’s on Smartkarma