In today’s briefing:
- KT Corp (030200 KS): Potential MSCI Inclusion in May
- MSCI May 2022 Index Rebalance Preview: Three Weeks to Start of Review Period
- KOSDAQ150 Index Rebalance Preview (June): Potential Inclusions Starting to Outperform
- JD.com Tencent Distribution Quick Update – Settlement Done. Shares Hit CCASS, but Not All Shares
- Merger Arb Mondays – Yashili, Razer, 51job, Sezzle, Link, Uniti, Guodian, Jin Jiang
KT Corp (030200 KS): Potential MSCI Inclusion in May
- NTT Docomo Inc (9437 JP) sold its entire holding of 14.26m shares in KT Corp (030200 KS) to Shinhan Group in January as part of a strategic alliance.
- That increased the foreign room in KT Corp (030200 KS) to above 15% which can result in the stock being included in the MSCI Korea Index at the May SAIR.
- SK Telecom (017670 KS), on the other hand, will see passive selling from FTSE All-World/All-Cap trackers in June due to its foreign room remaining below 10%.
MSCI May 2022 Index Rebalance Preview: Three Weeks to Start of Review Period
- Given the market volatility, there have been quite a few changes to the potential inclusions and exclusions at the MSCI May SAIR, especially for China.
- There are now three weeks to the start of the review period and we see 40 potential inclusions and 49 potential deletions. Most of the expected changes are in China.
- The largest potential inclusions are Powerchip Semiconductor Manufacturing, Orient Overseas International, Pop Mart International, Eva Airways, China Airlines, Emtek, KT Corp, Sumber Alfaria Trijaya, Hyundai Heavy Industries and Xtep International.
KOSDAQ150 Index Rebalance Preview (June): Potential Inclusions Starting to Outperform
- With over 80% of the averaging in the review period complete, we see 15 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance.
- 11 of the 15 changes are high/medium probability and it will take large moves over the rest of the review period for these stocks to drop out of the list.
- Four potential inclusions have more than 3 days of ADV to buy from passives, while nine potential deletions have more than 3 days of ADV to sell from passives.
JD.com Tencent Distribution Quick Update – Settlement Done. Shares Hit CCASS, but Not All Shares
- On 23rd Dec 2021, Tencent declared a special interim dividend in the form of a distribution in specie of 457.326m Class A ordinary shares of JD.com.
- While Tencent went ex-div on 20th Jan 2022, the actual settlement of the distribution is happened on 25th Mar 2022.
- In this note, we talk about the updates since our last note and the actual number of shares in CCASS.
Merger Arb Mondays – Yashili, Razer, 51job, Sezzle, Link, Uniti, Guodian, Jin Jiang
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only).
- This week, the highest gross spreads are Yashili International Holdings (1230 HK), Razer Inc (1337 HK), 51 Job Inc Adr (JOBS US), Sezzle Inc (SZL AU)
- Lowest gross spreads CIMIC Group Ltd (CIM AU), Z Energy Ltd (ZEL NZ), China Logistics Property Holdings (1589 HK), Virtus Health (VRT AU), Mapletree North Asia Commercial Trust (MAGIC SP)
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