In today’s briefing:
- OOIL (316 HK): Peak Index Inclusion?
- MVIS Global Rare Earth/Strategic Metals Index Rebalance: CXO & LKE Added; AVZ Out
- Kito (6409) – Shareholder Register Quirks Evolving – Becoming More Arb-Y Less Friendly
- MVIS Vietnam Index Rebalance: Two Adds, One Delete, Capping & Float Changes
- China VAST (6166 HK): Jinmao’s Pre-Conditional Offer
OOIL (316 HK): Peak Index Inclusion?
- Over the last 3 months, Orient Overseas International (316 HK) has been added to the FTSE All-World Index, MSCI Standard Index and Hong Kong Hang Seng Index (HSI INDEX).
- The stock has outperformed its Asia peers and now trades at a higher valuation. Shorts have been building positions over the last couple of months.
- Cumulative excess volume on the stock has been increasing. While a lot of positioning has likely been unwound, there could be more unwinding over the next few weeks.
MVIS Global Rare Earth/Strategic Metals Index Rebalance: CXO & LKE Added; AVZ Out
- Core Lithium Ltd (CXO AU), Lake Resources Nl (LKE AU) and Piedmont Lithium ADR have been added to the MVIS Global Rare Earth/Strategic Metals Index. AVZ Minerals has been deleted.
- Core Lithium Ltd (CXO AU) and Lake Resources Nl (LKE AU) are S&P/ASX 200 additions that will be also implemented at the close of trading on 17 June.
- With only 4 trading days to implementation (Monday is a holiday), the stocks with significant days of ADV to trade could out(under)perform their peers and the market.
Kito (6409) – Shareholder Register Quirks Evolving – Becoming More Arb-Y Less Friendly
- The Kito Corporation (6409 JP) take-private by KKR which is in process started with an interesting register. It has become interestinger.
- One possibly-strategic “pure investment” holder has gone 10+%. A “friendly activist” has gone below. Another large friendly holder sold 4%. Volume since it achieved near-deal-price has been 24.7% of votes.
- The register has likely become more arb-y and possibly strategic, and less friendly to Kito, but it is up to the holders to follow up. And there is a warning.
MVIS Vietnam Index Rebalance: Two Adds, One Delete, Capping & Float Changes
- There are 2 additions and 1 deletion for the MVIS Vietnam Index at the upcoming rebalance at the close on 17 June. Plus capping and float changes.
- The adds are Saigon – Hanoi Commercial (SHB VN) and Viet Nam Construction & Impo (VCG VN), while Tien Phong Securities (ORS VN) is the deletion.
- The largest passive outflows are on Vingroup Jsc (VIC VN), Feng Tay Enterprise (9910 TT) and Eclat Textile Company (1476 TT).
China VAST (6166 HK): Jinmao’s Pre-Conditional Offer
- Urban planner China Vast Industrial Urban Development (6166 HK) has received a pre-conditional Offer, by way of a Scheme, from China Jinmao Holdings (817 HK).
- The cancellation price is HK$2.40/share, a ~30% premium to the undisturbed price. The Offer Price is final.
- Pre-Conditions include approvals from SAMR, SASAC, and NDRC. These won’t be an issue as Jinamo is backed by SOE Sinochem.
Before it’s here, it’s on Smartkarma
