In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI, HSI, NIFTY 50/100/BANK, ASX200, PCOMP, KRX New Deal
- Activist Quarz Objects to Mapletree Merger Terms – A Commentary
- MSCI Feb 2022 Index Rebalance: Small Cap Changes and Flow
- Suzuki’s All-Time Low Stub As Maruti Faces Electric Vehicle Crossroad
- Index Rebalance & ETF Flow Recap: MSCI STD/SC, SIMSCI, STAR50, Alibaba
Index Rebalance & ETF Flow Recap: MSCI, HSI, NIFTY 50/100/BANK, ASX200, PCOMP, KRX New Deal
- The big event in the coming week is the MSCI Feb QIR announcement. Sydney Airport (SYD AU) will be deleted from indices after the close of trading on 9 February.
- There are quite a few changes expected across the NIFTY Index (NIFTY INDEX), Nifty Bank Index (NSEBANK INDEX) and NIFTY100 Indices. The PCOMP INDEX rebalances on 11 February.
- There were large inflows to Australia focused ETFs during the week, while Japan saw some pretty chunky outflows from a few ETFs.
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?”
MSCI Feb 2022 Index Rebalance: Small Cap Changes and Flow
- AirAsia Group Bhd (AAGB MK) is the only deletion from the MSCI Small Cap Index at the February QIR. However, there are NOS and FIF changes for many stocks.
- Razer Inc (1337 HK) will have the largest passive inflow as a result of an increase in its Index Inclusion Factor (IIF) from 0.5 to 1.
- Other stocks that will have passive inflows are Hitachi Transport System (9086 JP), Aavas Financiers Ltd, Tube Investments of India (TI IN) and Krishna Institute of Medical Sciences (KIMS IN).
Suzuki’s All-Time Low Stub As Maruti Faces Electric Vehicle Crossroad
- Suzuki Motor (7269 JP)‘s implied stub is currently around its all-time low, as is the simple ratio (Suzuki/Maruti Suzuki India (MSIL IN)).
- The global transition to electric vehicles is underway, spurred on by environmental concerns, government legislation, and financial incentives.
- Maruti remains steadfast in its support for hybrid vehicles. In the long run, that’s a liability.
Index Rebalance & ETF Flow Recap: MSCI STD/SC, SIMSCI, STAR50, Alibaba
- The changes to the MSCI Standard Index at the February QIR threw up a few surprises, notably the inclusion of Grab (GRAB US) and non-inclusion of Pop Mart (9992 HK).
- The coming week will have LG Energy Solution (373220 KS) added to the MSCI Korea. Given some indices have already included the stock, there could be a squeeze higher.
- Hang Seng Indexes will announced the changes to its family of indices post market close on Friday, followed by FTSE announcing changes to the GEIS early Saturday morning Asia time.
Before it’s here, it’s on Smartkarma
