In today’s briefing:
- HSI Index Rebalance Preview (March 2022): The Slow Crawl Continues
- Hock Seng Lee (HSL MK): Unconditional Offer
- S&P/ASX Indices: Quiddity Leaderboard for March 2022 Rebalance (Final)
- Investors Caught Out As Twiggy Backs IGO’s Offer For Western Areas
- Korean Companies Announcing Share Cancellations Are Outperforming the Market
HSI Index Rebalance Preview (March 2022): The Slow Crawl Continues
- The March rebalance should see the slow crawl toward 80 index members continue. We should get up to 68-70 members in March. Reaching 80 by June is unlikely.
- High probability inclusions are Kuaishou Technology (1024 HK), Smoore International (6969 HK), Nongfu Spring (9633 HK), JD Health (6618 HK) and JD Logistics (2618 HK).
- Currently, index turnover due to capping/float changes is low which will allow more stocks to be added to the index. Increase in the turnover will result in fewer changes.
Hock Seng Lee (HSL MK): Unconditional Offer
- Hock Seng Lee (HSL MK) has announced an unconditional voluntary take-over offer of RM1.35/share.
- The joint ultimate offerors, led by director Yu Chee Hoe, currently hold 84.2%.
- HSL is already in non-compliance with Bursa’s 25% free float. The Offeror does not intend to main HSL’s listing
S&P/ASX Indices: Quiddity Leaderboard for March 2022 Rebalance (Final)
- The S&P/ASX Index family is a widely-tracked group of indices and sub-indices which represent the performance of ASX-listed companies.
- In March 2022, Index rebalance events will take place for the S&P/ASX capitalization-weighted indices including ASX 300, ASX 200, ASX 100, ASX 50, and ASX 20.
- In this insight, we take a look at the leading candidates who could become Adds/Deletes during the March 2022 Rebalance and other potential irregular changes.
Investors Caught Out As Twiggy Backs IGO’s Offer For Western Areas
- Andrew Forrest’s Wyloo Consolidated, with 9.8% of shares out, will now support the IGO Ltd (IGO AU) / Western Areas (WSA AU), just three weeks after paying through terms.
- That pledge pivots off a newly-inked side agreement between IGO and Wyloo to jointly evaluate opportunities for nickel downstream processing in Australia.
- This removes the immediate prospect of a competing Offer from Wyloo, and in turn, IGO’s need to bump terms. Yet BHP Group (BHP AU) still waits in the wings.
Korean Companies Announcing Share Cancellations Are Outperforming the Market
- In this insight, we have identified 16 Korean companies that have announced common shares cancellations in 4Q 2021 and 1Q 2022.
- There has been a tremendous outperformance of KOSDAQ listed companies that have announced shares cancellations in this period.
- Given the continued outperformance of Korean companies that are outperforming the market after announcing treasury shares cancellation, this reflects an alpha generating trend that bears close scrutiny.
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