In today’s briefing:
- MSCI Feb 2022 Index Rebalance: Day 1 Chosen Again
- MSCI Feb 2022 Index Rebalance: Float/Share Changes
- MSCI Singapore Index: Diverging from the Straits Times Index
- Activist Quarz Objects to Mapletree Merger Terms – A Commentary
- Block Deal Sale of Woori Financial Group by KDIC
MSCI Feb 2022 Index Rebalance: Day 1 Chosen Again
- There are 17 adds and 8 deletes for the Asia Pacific region. Most of the changes were expected, but there are a few surprises.
- China Resources Microelectronics-A (688396 CH), Grab (GRAB US) and Lufax Holdings (LU US) have been added, while Qinghai Salt Lake (000792 CH) and Pop Mart International (9992 HK) have not.
- The last tranche of Sea‘s inclusion in the SIMSCI INDEX will take place at the QIR. With the inclusion of GRAB, there will be two foreign listings in the SIMSCI.
MSCI Feb 2022 Index Rebalance: Float/Share Changes
- MSCI announced the changes to the Standard Index pre market open in Asia today. There were changes to the number of shares and free floats for stocks too.
- The increase in the IIF on Sea Ltd (SE US) was known, while the increase in FIF on SK Square (402340 KS) was expected.
- There are quite a few stocks that have over US$10m to trade or over a days ADV to trade from passive funds. These could be interesting to watch.
MSCI Singapore Index: Diverging from the Straits Times Index
- The increase in the IIF for Sea Ltd and the inclusion of Grab in the SIMSCI INDEX will result in nearly 24% of the index being traded outside of Singapore trading hours.
- The changes will also result in a big drop in the dividend yield of the SIMSCI INDEX. The dividend yield on the STI INDEX will be nearly 80bps higher.
- There has been little change on the volumes and open interest for the SIMSCI INDEX futures but it would be good to keep an eye given the recent changes.
Activist Quarz Objects to Mapletree Merger Terms – A Commentary
- Sometime activist Quarz presented a 10-page “open letter” to Mapletree North Asia Commercial Trust (MAGIC SP) (a.k.a. MNACT) saying it wanted better terms for MNACT holders.
- The presentation touches on a lot of points, but needs to be read with care. It makes assumptions some would not make, and doesn’t back them up.
- However, the right way to think about this may be “Why Not Both?”
Block Deal Sale of Woori Financial Group by KDIC
- Korea Deposit Insurance Corp (KDIC) is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won.
- KDIC plans to sell 7.28 million to 21.84 million shares of Woori Financial Group in a block deal, which represents 1% to 3% of total shares of the company.
- The block deal price range offered to the institutional investors is from 15,084 won to 15,550 won. We would take the deal even at little discount.
Before it’s here, it’s on Smartkarma
