In today’s briefing:
- MSCI May 2022 Index Rebalance Preview: Changes in a Volatile Market
- JD.com Tencent Div Distribution – The US$10bn Overhang – Passives Might Have to Sell
- JD.com Tencent Div Distribution – The US$10bn Overhang
- Softbank – That ¥4000 Mark Is Getting Close…
- S&P/ASX Indices: March 2022 Rebalance Update and Post-Inclusion Outlook
MSCI May 2022 Index Rebalance Preview: Changes in a Volatile Market
- The review period runs from 18-29 April for the May SAIR, the results will be announced on 13 May (Asia-time) with the changes implemented after the close on 31 May.
- Most of the potential changes are in China with few changes spread across the other Asian markets. China loses the most number of index members, followed by Japan.
- There are over 4 weeks to the start of the review period and there will be changes over that time as stock prices move around.
JD.com Tencent Div Distribution – The US$10bn Overhang – Passives Might Have to Sell
- On 23rd Dec, Tencent declared a dividend in the form of distribution in specie of 457.326m shares of JD.com, i.e. 1 share of JD.com for every 21 shares of Tencent.
- While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.
- In this note, we talk about the likely impact of Prosus’ shareholding on passive flows at the time of settlement.
JD.com Tencent Div Distribution – The US$10bn Overhang
- On 23rd Dec, Tencent declared a dividend in the form of distribution in specie of 457.326m shares of JD.com, i.e. 1 share of JD.com for every 21 shares of Tencent.
- While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is expected to happen on or about 25th Mar 2022.
- In this note, we look at Tencent’s shareholding in order to decipher the impact on JD.com’s shares once the distribution is settled to determine who the sellers could be.
Softbank – That ¥4000 Mark Is Getting Close…
- When Softbank announced its strange buyback in November we wondered aloud whether buyback maximums of ¥1trn and 250m meant Softbank foresaw a ¥4,000 share price in its future.
- With the stock price now having jauntily sashayed down to ¥4,265 it is a question why they aren’t more aggressive with their buyback.
- A question that may be answered by all the cash raising measures that Softbank is engaged in perhaps?
S&P/ASX Indices: March 2022 Rebalance Update and Post-Inclusion Outlook
- The March 2022 regular rebalance constituency changes for ASX 300, ASX 200, ASX 50, and ASX 20 were announced on 4th March 2022.
- These constituency changes will be implemented at the close of 18th March 2022 (Friday) and will be effective from the open on 21st March 2022 (Monday).
- Below is a discussion on the performance of these candidates so far and our expectation for the next few weeks.
Before it’s here, it’s on Smartkarma
