In today’s briefing:
- TOPIX April Rebalance – Two Days To Go
- S&P/ASX Index Rebalance Preview: Potential Changes in May & June
- NZ AIR Rights Almost Done – Discounted Vs Regional “Shut-In” Peers
- Hitachi Transport (9086 JP) – Deciphering Takeover Price by Newspaper Article Language
- Kotak Mahindra Bank (KMB IN): Foreign Room Increases; FTSE Inclusion in Sep Possible
TOPIX April Rebalance – Two Days To Go
- There are two days to go until the TOPIX April-end rebalance.
- On an average-weighted, sector-neutral basis, the “announcement to event” trade is -0.3% from 7 April to 25 April. The rest of the buy vs sell basket is doing worse.
- There should be ¥740bn-ish to buy and sell (each) on Wednesday at the close. If you have trades to execute in Japan, the attached spreadsheet shows where there is opportunity.
S&P/ASX Index Rebalance Preview: Potential Changes in May & June
- Seven Group Holdings (SVW AU) and Lake Resources Nl (LKE AU) could be added the S&P/ASX100 Index and S&P/ASX 200 respectively next week following the privatisation of Crown Resorts (CWN AU).
- Then we have the Tabcorp Ltd (TAH AU) spinoff in May that will add to the changes at the regular rebalance in June for the indices.
- Short interest has spiked on Lake Resources Nl (LKE AU) and Core Lithium Ltd (CXO AU) recently following the huge rally in the stocks.
NZ AIR Rights Almost Done – Discounted Vs Regional “Shut-In” Peers
- The NZ Air Rights Trade is nearly done. Last day of trading is today.
- The Rights were super cheap. They ran as NZ AIR ran a bit.
- Now it is the time to trade NZ AIR Shares vs Peers.
Hitachi Transport (9086 JP) – Deciphering Takeover Price by Newspaper Article Language
- Hitachi has been in the process of selling Hitachi Transport System (9086 JP). An article in the Nikkei Thursday last suggested a deal was imminent (both companies report 28 April).
- Bloomberg carried an article this morning with more numbers and implied arithmetic. Then they revised the language in the article.
- There is STILL room for different interpretations of likely deal price if one tries to parse all the info provided and match it with history. But we may be there.
Kotak Mahindra Bank (KMB IN): Foreign Room Increases; FTSE Inclusion in Sep Possible
- Kotak Mahindra Bank (KMB IN) is not a part of the FTSE All-World Index since the foreign room was less 20% over the last couple of years.
- Foreign room is 19.8% as of end March and small foreign selling is needed for Kotak Mahindra Bank to be added to the FTSE All-World Index at the September SAIR.
- If added to the FTSE All-World Index, passive trackers will need to buy 38.2m shares (US$861m; 11.1 days ADV; 22 days delivery volume) of Kotak Mahindra Bank (KMB IN).
Before it’s here, it’s on Smartkarma
