In today’s briefing:
- S&P/ASX Index Rebalance (March 2022): Changes & Surprises
- Hitachi Transport Is the Eventy Energizer Bunny
- The Real Issue For Investors Is Less Russia And More About Skidding Global Liquidity
- China Pivots from Zero-COVID Policy & End of China’s Ban on Korean Culture?
- Index Rebalance & ETF Flow Recap: NKY, FTSE CH50/A50/TW50/EPRA, S&P/ASX, KRX New Deal, NIO, Russia
S&P/ASX Index Rebalance (March 2022): Changes & Surprises
- There are two changes for the S&P/ASX20, one change for the S&P/ASX50, four changes to the S&P/ASX 200 (AS51 INDEX), while there are 14 adds/ 9 deletes to the S&P/ASX300.
- While we had forecast nearly all the changes, there are a few surprises. The big one’s the inclusion of Santos Ltd in the ASX20 and the deletion of Block (SQ2 AU).
- Following its huge rally over the last few months, AVZ Minerals (AVZ AU) is a double inclusion to the S&P/ASX 200 and the S&P/ASX300 Index. Plus there are FTSE inflows.
Hitachi Transport Is the Eventy Energizer Bunny
- Hitachi Transport System (9086 JP) has been “virtually” for sale since October 2019 but it did not pop when others did then. But SG and HTS “consciously uncoupled” in 2020.
- Mid-Year last year saw news HTS was entertaining offers, which didn’t go anywhere but newer news suggests Round 2 of a new course of bidding is done.
- And the stock keeps on going up and up and up.
The Real Issue For Investors Is Less Russia And More About Skidding Global Liquidity
- Global Liquidity is already falling from 2021 peaks. Not set to bottom until late-2023
- Central Bank tightening is reinforcing this decline. More to come
- Ukraine Crisis will not deflect the downtrend. More likely reinforces it
China Pivots from Zero-COVID Policy & End of China’s Ban on Korean Culture?
- On 3 March, the South Korean romance drama “Something in the Rain” was streamed on a Chinese online platform iQiyi.
- This was the first time in five years that a Korean TV show has been approved by the Chinese government to be formally allowed to be shown in China.
- In addition, there has been numerous media news flow in the past week regarding China pivoting away from its zero-COVID policy.
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.
Before it’s here, it’s on Smartkarma
