In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI, HSI, NIFTY 50/100/BANK, ASX200, PCOMP, KRX New Deal
- LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
- Toshiba – 16 Millionth New Plan Unlocks New Value! No Just Kidding It Didn’t
- Bapcor (BAP AU): Potential Suitors Kicking Tyres
- China Mobile (941 HK) Buyback Period Starts
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.
LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
- There is recently a growing view that the ETF operators (KODEX and TIGER) will conduct most of the rebalancing trading on February 9 to avoid excessive tracking errors.
- LG Chem will face an outflow of ₩0.38T (0.8% of SO and 1.37x ADTV). LG Energy would be 0.36x ADTV and 0.31% of SO, assuming a DTV of 2M shares.
- This is definitely a clear long/short setup opportunity: LG Energy LONG/LG Chem SHORT position. Alternatively, we can also consider approaching this event with Battery ETFs LONG/LG Chem Short setup.
Toshiba – 16 Millionth New Plan Unlocks New Value! No Just Kidding It Didn’t
- Another quarter, another Toshiba Medium Term Plan as activist investors keep sending management back to the drawing board until they come back with a privatisation.
- Except there is still no sign of any significant appetite among buyers and no sign that they would be allowed to go through with it even if there was.
- So Toshiba management shuffled a few deck chairs and the market yawned.
Bapcor (BAP AU): Potential Suitors Kicking Tyres
- Automotive aftermarket parts provider Bapcor Ltd (BAP AU) has reportedly recently received two buyout proposals.
- This follows the sudden departure of former CEO Darryl Abotomey in December.
- Confirmation of these approaches may be clarified when 1H22 results are released on the 9 February.
China Mobile (941 HK) Buyback Period Starts
- China Mobile (941 HK) announced an H-share buyback program which had as its upper limit the purchase of 37% of the H-share CCASS position.
- After that, the SOE parent announced a plan to buy RMB shares in Shanghai.
- The virtuous cycle of shareholder return starts today. Today is the first day China Mobile can start buying its H-shares.
Before it’s here, it’s on Smartkarma
