In today’s briefing:
- FTSE EPRA Nareit Developed Asia Preview: Adds, Close Adds & Misses for June
- FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- MCT and MNACT Unitholders Approve Merger To Become MPACT
- Tabcorp Spinoff (TLC/TAH) & S&P/ASX: Where They Stay and Where They Go
- KOSPI200 Index Rebalance: Se7en Changes
FTSE EPRA Nareit Developed Asia Preview: Adds, Close Adds & Misses for June
- The FTSE EPRA Nareit Index June rebalance will use data from 23 May. The changes will be announced on 1 June and implemented at the close on 17 June.
- Potential inclusions at the review include Ichigo Inc (2337 JP) and LOTTE Reit Co Ltd (330590 KS) while there is a possibility of Digital Core REIT (DCREIT SP) being added.
- Mapletree North Asia Commercial Trust‘s NPI from Developed Markets is 72% making it ineligible for index inclusion, while Frasers Hospitality Trust‘s drop has taken it out of the inclusion list.
FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- We expect China Railway Group Ltd H (390 HK) and Yanzhou Coal Mining (1171 HK) to replace Smoore International (6969 HK) and Sunny Optical (2382 HK) in the FTSE China50 Index.
- There are capping changes that have a reasonable large impact on a couple of stocks. One-way turnover is estimated at 3.97% and will result in a one-way trade of HK$1,912m.
- FTSE has increased the investability weight for Li Auto (2015 HK) / Li Auto Inc. (LI US) and this leads to the stock failing the median liquidity test.
MCT and MNACT Unitholders Approve Merger To Become MPACT
- The merger between Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) (a.k.a. “MNACT”) was approved by both sets of unitholders today.
- MCT unitholders offered 85.7-92.1% approval rates for the four measures. MNACT unitholders offered 98-99% approval rates (but high 80s in terms of unitholder count).
- Now we move forward, with the election of terms and
Tabcorp Spinoff (TLC/TAH) & S&P/ASX: Where They Stay and Where They Go
- The Lottery Corp (TLC AU) and new Tabcorp Ltd (TAH AU) have commenced trading today as standalone entities following their demerger.
- We expect Tabcorp Ltd (TAH AU) to be deleted from the S&P/ASX50 and S&P/ASX100 indices at the June rebalance, while it would remain in the S&P/ASX 200 (AS51 INDEX).
- Given Crown Resorts (CWN AU) has delayed the second court hearing, there should be an extra deletion from the S&P/ASX 200 (AS51 INDEX) in June.
KOSPI200 Index Rebalance: Se7en Changes
- There will be 7 additions and 7 deletions for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the June rebalance that will be implemented on 9 June.
- We got all 7 inclusions right and 5 of the 7 deletions right. The adds have 3-6 days ADV to buy, while the deletes have 4-12 days ADV to sell.
- Short interest on the deletions is a significant portion of the estimated passive selling and there could be short covering in the week leading up to implementation of the changes.
Before it’s here, it’s on Smartkarma
