In today’s briefing:
- FTSE Japan: Potential Inclusions Following TSE Restructure
- SRE Holdings (2980 JP) Offering – New Higher Growth at New Lower Multiple
- Potential Additions & Deletions in MSCI Korea Rebalance in May 2022
- KOSPI Size Index Series Rebalancing: Official Results & Passive Impacts
- Second Brookfield-MCB Bid for AGL Energy Rejected
FTSE Japan: Potential Inclusions Following TSE Restructure
- Following the TSE restructure on 4 April, FTSE will include stocks that trade on the Prime Market and Standard Market as part of the eligible universe for index inclusion.
- We see 4 stocks meeting the requirements for inclusion in the FTSE All-World Index, and another 13 stocks meeting the requirements for inclusion in the FTSE All-Cap Index.
- There are stocks that have over 4 days of ADV to buy from passive trackers. Given the inclusions will take place in March 2023, its wait and watch for now.
SRE Holdings (2980 JP) Offering – New Higher Growth at New Lower Multiple
- SRE Holdings Corp (2980 JP) last week announced an offering of new shares and a secondary share sale by Z Holdings (4689 JP) of the bulk of its holdings.
- The Z Holdings sale coincides with a “new business alliance” between SRE and Yahoo. At first glance, it appears as if both sides have decided to rejig what they do.
- SRE has an interesting business model which is quite growthy. It is growthier than it planned and others expected, but the stock has fallen 70% in 3mos. It’s a buy.
Potential Additions & Deletions in MSCI Korea Rebalance in May 2022
- In this insight, we discuss the potential inclusions and deletions in the upcoming MSCI rebalance in May 2022. The next MSCI Korea rebalance will be announced on 12 May 2022.
- We believe that Hyundai Mipo, Hanwha Aerospace, and Daewoo Shipbuilding could increasingly be viewed as potential additions to MSCI Korea rebalance in May.
- Green Cross Corp, Sk Chemicals Co, and Alteogen could increasingly be viewed as potential deletion candidates in the next MSCI Korea rebalance.
KOSPI Size Index Series Rebalancing: Official Results & Passive Impacts
- KRX officially announced the rebalancing results of the KOSPI Size Index Series. The effective date is March 11.
- Of these, new MidCap entrants are what matter the most. This rebalancing delivers a total of 26 new MidCap entrants.
- The three stocks shown below have ADTV of over ₩5B and passive flow x ADTV of 1.0x or higher: CJ Logistics, GS Retail, and Lotte Rental.
Second Brookfield-MCB Bid for AGL Energy Rejected
- The duo of Brookfield and Atlassian/Australian billionaire Mike Cannon-Brookes has apparently lobbed a higher offer for AGL Energy Ltd (AGL AU) and AGL has apparently rejected it.
- Confirmation from AGL is due tomorrow but given the previous bid was “ridiculously low”, “extremely undervalued” the company, and had “unserious” elements, expect the language to be similar.
- Next steps probably mean waiting for the De-Merger Circular due April but possibly May. In the meantime, this probably trades in a range.
Before it’s here, it’s on Smartkarma
