In today’s briefing:
- The BIGLY TOPIX April 2022 Rebalance – $20bn One-Way Split Over 3 Months
- TOPIX FFW Transition – Big Flows from April to June
- Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, MSCI, ASX200, CSI300, HDFC/HDFCB, PPT/PDL
- GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact
- MSCI May 2022 Index Rebalance Preview: Last Week Before the Start of the Review Period
The BIGLY TOPIX April 2022 Rebalance – $20bn One-Way Split Over 3 Months
- The TSE launched its new cash equity market structure earlier this week. The TOPIX Index changes include a one-off FFW Methodology Review, where results were announced today.
- The changes announced today go part-way to fixing float issues, but there will be follow-on changes in October, and one should expect companies to react with share cancellations.
- The big gainer in this TOPIX rebal is NTT (Nippon Telegraph & Telephone) (9432 JP). There are a fair number of “losers.” The 3-month total trade is about ¥2.3trln one-way.
TOPIX FFW Transition – Big Flows from April to June
- On 7 April, the JPX announced the changes to the Free Float Weights (FFW) for the TOPIX Index. There are some big changes due to the updated FFW methodology.
- From April to June, we see a one-way turnover of 2.87% and a one-way trade of ¥2,285bn. Some stocks have opposite way flows in different months.
- Stocks with inflows outperformed stocks with outflows from Oct-Dec 2021 before giving up all the gains. These stocks have started to outperform and could continue outperforming over the next quarter.
Index Rebalance & ETF Flow Recap: HSI, HSCEI, HSTECH, MSCI, ASX200, CSI300, HDFC/HDFCB, PPT/PDL
- The S&P/ASX 200 (AS51 INDEX) rebalance takes place at the close on Monday, 11 April with HomeCo Daily Needs REIT (HDN AU) replacing CIMIC Group Ltd (CIM AU).
- The review period for the MSCI May SAIR starts on 18 April. There will be adds/deletes, listing switches, and FIF changes (both big and small).
- There were big inflows to the iShares MSCI Emerging Markets (EEM US), Vanguard FTSE Emerging Markets ETF (VWO US) and iShares Core MSCI Emerging Markets ETF (IEMG US) ETFs.
GoTo Gojek Tokopedia IPO: Potential LQ45, IDX30, IDX80 Index Fast Entry & Impact
- GoTo (GOTO IJ) lists on the IDX tomorrow. The IDX has GoTo (GOTO IJ)‘s free float at 66% which would mean IDX30, LQ45 and IDX80 Fast Entry index inclusion.
- If included in the indices at a free float of 66%, GoTo (GOTO IJ) will have a weight of 13.55% in the IDX30 Index and 12.12% in the LQ45 Index.
- Passive trackers will then need to buy 13.2% of the real float on the stock. Active funds will also buy the stock as it would appear in their benchmarks.
MSCI May 2022 Index Rebalance Preview: Last Week Before the Start of the Review Period
- This is the last trading week before the review period for the MSCI May SAIR commences next week. This is a short week with a lot of markets closed Friday.
- We see 38 potential adds and 63 potential deletes across Asia. Most changes are in China, with the most net deletions in Japan and China.
- The largest potential inclusions are Powerchip Semiconductor Manufacturing, Orient Overseas International, Pop Mart International, Jindal Steel & Power, Eva Airways, Emtek, China Airlines, Sumber Alfaria Trijaya and KT Corp.
Before it’s here, it’s on Smartkarma
