In today’s briefing:
- MVIS Global Junior Gold Miners Index Rebalance: Couple of Adds in Asia
- MVIS Global Rare Earth/Strategic Metals Index Rebalance: Some Large Capping Ouflows in Australia
- Index Rebalance & ETF Flow Recap: HSCEI, FTSE JP, STAR50, Sensex, NIO, GDXJ, Vietnam
- Olam Group: Restructuring to Unlock Value
- China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications
MVIS Global Junior Gold Miners Index Rebalance: Couple of Adds in Asia
- Malagasy Minerals (CMM AU) and Bumi Resources Minerals Tbk (BRMS IJ) will be added to the MVIS Global Junior Gold Miners Index at the close on 18 March.
- The Vaneck Jr Gold Miners (GDXJ US) ETF tracks the index and has an AUM of US$5.2bn. So there will be an impact on the adds, deletes and other stocks.
- There are a few stocks in Australia that will have inflows from the GDXJ US ETF apart from the FTSE All-Cap and S&P/ASX 300 trackers on the same day.
MVIS Global Rare Earth/Strategic Metals Index Rebalance: Some Large Capping Ouflows in Australia
- There are no adds/deletes to the MVIS Global Rare Earth/Strategic Metals Index at the March rebalance. However, there are changes to free floats and capping factors.
- The largest impacts are on ioneer Ltd (INR AU), AVZ Minerals (AVZ AU), Australian Strategic Materials (ASM AU), Iluka Resources (ILU AU) and Pilbara Minerals (PLS AU).
- The non-inclusion of Core Lithium Ltd (CXO AU) and Lake Resources Nl (LKE AU) could lead to a selloff tomorrow. Both stocks are FTSE All-Cap and S&P/ASX300 inclusions on Friday.
Index Rebalance & ETF Flow Recap: HSCEI, FTSE JP, STAR50, Sensex, NIO, GDXJ, Vietnam
- The Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and SSE STAR50 (STAR50 INDEX) rebalances were implemented during the week. NIO Inc (9866 HK) started trading in Hong Kong.
- Busy week coming up with the implementation of the KOSDAQ 150 Index, S&P/ASX 200 and the FTSE indices including All-World/All-Cap, China 50, XIN9I INDEX, Taiwan50 and EPRA Nareit.
- The changes to the MVIS Global Junior Gold Miners Index and the MVIS Vietnam Index were announced post market close on 11 March and will be implemented on 18 March.
Olam Group: Restructuring to Unlock Value
- Olam Group set to replace Olam International (OLAM SP) as the listed company entity on 16 March. It consists of Olam Food Ingredients (ofi), Olam Agri and Olam International (OIL).
- The complicated restructuring exercise which was announced in January 2020 is driven by the Board’s intent to unlock long-term shareholder value.
- Our SoTP valuation is S$2.36 per share, which is a 34% upside to the last trading price of S$1.76 per share (9 March prior to the suspension of the shares).
China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications
- China ADRs were sharply lower last week as the SEC started to name companies that were identified under the Holding Foreign Companies Accountable Act (HFCAA).
- Then DiDi Global dropped 44% on Friday following reports that the their proposals to prevent data/security leaks did not meet CAC’s requirements and work on the HK listing was halted.
- With 2024 not too far away, a lot of the U.S. listed companies will look at listing in Hong Kong in the near future. That will have its own implications.
Before it’s here, it’s on Smartkarma
