In today’s briefing:
- GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact
- MSCI May 2022 Index Rebalance Preview: Last Week Before the Start of the Review Period
- Greatview (468 HK): A Packing Case Pick
- MSCI Korea Rebalancing: Cautions with KT & Hyundai Heavy Industries
- Topix FFW Transition – Insurance Sector a Big Net Sell
GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact
- GoTo (GOTO IJ) lists on the IDX tomorrow. The IDX has GoTo (GOTO IJ)‘s free float at 66% which would mean IDX30, LQ45 and IDX80 Fast Entry index inclusion.
- If included in the indices at a free float of 66%, GoTo (GOTO IJ) will have a weight of 13.55% in the IDX30 Index and 12.12% in the LQ45 Index.
- Passive trackers will then need to buy 13.2% of the real float on the stock. Active funds will also buy the stock as it would appear in their benchmarks.
MSCI May 2022 Index Rebalance Preview: Last Week Before the Start of the Review Period
- This is the last trading week before the review period for the MSCI May SAIR commences next week. This is a short week with a lot of markets closed Friday.
- We see 38 potential adds and 63 potential deletes across Asia. Most changes are in China, with the most net deletions in Japan and China.
- The largest potential inclusions are Powerchip Semiconductor Manufacturing, Orient Overseas International, Pop Mart International, Jindal Steel & Power, Eva Airways, Emtek, China Airlines, Sumber Alfaria Trijaya and KT Corp.
Greatview (468 HK): A Packing Case Pick
- Earlier this year, Jardine Matheson Holdings (JM SP) was understood to be exploring the sale of its 28% stake in Greatview Aseptic Packaging (468 HK).
- GA Pack announced its full-year results late last month and for the first time since 2012, opted not to pay a final dividend.
- Shares are down 20% since that non-dividend announcement. That’s convenient.
MSCI Korea Rebalancing: Cautions with KT & Hyundai Heavy Industries
- KT’s inclusion possibility is still high, but if the foreign ownership continues to increase at the current rate until April end, there is a possibility that the inclusion will fail.
- Suppose HHI faces a little over a 10% price correction. In that case, its market cap will fall below ₩10T, and it will stand on the screening borderline.
- We need to consider closing our LONG positions for these two earlier.
Topix FFW Transition – Insurance Sector a Big Net Sell
- The TOPIX Insurance Sector sees the worst net flows as a percentage of index weight among the 33 sectors in the April-June FFW Transition.
- On a net basis, rebalance flows favour Japan Post Insurance (7181 JP) vs T&D Holdings (8795 JP) (finishing a buyback) and Dai Ichi Life Insurance (8750 JP) (just finished).
- JPI has underperformed both over the last three years despite growing BVPS by more. And earnings should be a blowout.
Before it’s here, it’s on Smartkarma
