In today’s briefing:
- Last Week in Event SPACE: Russia/Indices, Prosus, Virtus, Crown, Nexon, Hitachi Metals
- Index Rebalance & ETF Flow Recap: NKY, FTSE CH50/A50/TW50/EPRA, S&P/ASX, KRX New Deal, NIO, Russia
- Softbank Group – Tough Week for VF as Public Portfolio Falls $6bn over Two Days
- ECM Weekly (6th Mar 2022) – SBI Sumishin, Farm Fresh, Arrail, NIO, LIC, ZIP, IDP Education
Last Week in Event SPACE: Russia/Indices, Prosus, Virtus, Crown, Nexon, Hitachi Metals
- Major global indices have relegated Russia to the “standalone” and “unclassified” market status. Talk of significant flows into major non-Russia EM markets such as China, Taiwan, Korea, etc is misguided.
- Even if OLX and VK Group are written down to zero, the fall in Prosus (PRX NA)‘s implied stub has overshot the mark
- The founder and former chairman and CEO of Nexon (3659 JP) has passed away. The estate may wish to sell Nexon shares, or its entire stake, at some point near-term.
Index Rebalance & ETF Flow Recap: NKY, FTSE CH50/A50/TW50/EPRA, S&P/ASX, KRX New Deal, NIO, Russia
- Changes to the Nikkei 225 (NKY INDEX), FTSE China50/A50/Taiwan50/EPRA Nareit, KRX New Deal Indices and the S&P/ASX family of indices were announced this week.
- The Hang Seng indexes rebalanced Friday and the coming week will have LG Energy Solution (373220 KS)‘s Fast Entry into the KOSPI2 INDEX and implementation of the STAR50 INDEX changes.
- NIO Inc (9866 HK)/ NIO Inc (NIO US) is expected to start trading in Hong Kong on 10 March and there are index implication for the Secondary Listing.
Softbank Group – Tough Week for VF as Public Portfolio Falls $6bn over Two Days
- Valuation losses in the public portfolio have increased by $6bn over two days on weakness at Coupang, Grab, DoorDash and WeWork. Total losses for the quarter stand at $17bn.
- With Alibaba shares still weak, NAV/share has moved decisively below ¥10,000/share and is back to where it in May/June 2020 when tech was first rebounding from the Covid shock.
- The discount to NAV stands at 49% but is likely to expand when markets in Japan have a chance to respond to how stocks traded in the US on Friday.
ECM Weekly (6th Mar 2022) – SBI Sumishin, Farm Fresh, Arrail, NIO, LIC, ZIP, IDP Education
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Market volatility has put Life Insurance Corp of India (LIC) (1248Z IN)‘s IPO launch in time while SBI Sumishin Net Bank (7163 JP) will have to lower its asking valuation.
- Placement scene remains quiet with only Zip Co Ltd (Z1P AU) placement and IDP Education (IEL AU) blocks.
Before it’s here, it’s on Smartkarma
