In today’s briefing:
- MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Two Potential Adds; Two Close
- FTSE Japan: Potential Inclusions Following TSE Restructure
- Index Rebalance & ETF Flow Recap: NKY, FTSE CH50/A50/TW50/EPRA, S&P/ASX, KRX New Deal, NIO, Russia
- Merger Arb Mondays – Razer, Sezzle, Irongate, 51job, Link, Guodian, Crown Resorts
- BBL/KBANK: Time for a Bounce
MVIS Global Rare Earth/Strategic Metals Index Rebalance Preview: Two Potential Adds; Two Close
- Core Lithium Ltd (CXO AU) and Lake Resources Nl (LKE AU) could be added to the MVIS Global Rare Earth/Strategic Metals Index at the upcoming rebalance in March.
- Firefinch Ltd (FFX AU) and Sayona Mining (SYA AU) are close adds but unlikely to make the cut for inclusion at the March rebalance.
- There will be a modest impact on the potential adds at the rebalance but the impact on some of the other names could be higher due to capping changes.
FTSE Japan: Potential Inclusions Following TSE Restructure
- Following the TSE restructure on 4 April, FTSE will include stocks that trade on the Prime Market and Standard Market as part of the eligible universe for index inclusion.
- We see 4 stocks meeting the requirements for inclusion in the FTSE All-World Index, and another 13 stocks meeting the requirements for inclusion in the FTSE All-Cap Index.
- There are stocks that have over 4 days of ADV to buy from passive trackers. Given the inclusions will take place in March 2023, its wait and watch for now.
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.
Merger Arb Mondays – Razer, Sezzle, Irongate, 51job, Link, Guodian, Crown Resorts
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only).
- This week, the highest gross spreads are Razer Inc (1337 HK), Sezzle Inc (SZL AU), Irongate Group (IAP AU), 51 Job Inc Adr (JOBS US), Link Administration Holdings (LNK AU)
- The lowest gross spreads are China Logistics Property Holdings (1589 HK), Virtus Health (VRT AU), CIMIC Group Ltd (CIM AU), Singapore Press Holdings (SPH SP), Australian Pharmaceutical Industries (API AU)
BBL/KBANK: Time for a Bounce
- Bangkok Bank Public has underperformed Kasikornbank PCL over the short-term and over the last year as well. The price ratio is now trading at the low end of the recent range.
- The number of NVDRs issued on Bangkok Bank Public (BBL TB) have continued to decrease while increasing on Kasikornbank PCL (KBANK TB).
- Bangkok Bank Public (BBL TB) trades cheaper than Kasikornbank PCL (KBANK TB) and there could outperform in the short-term.
Before it’s here, it’s on Smartkarma
