In today’s briefing:
- FTSE All-World/All-Cap Sep Index Rebalance Preview: Asia Ex Japan Ex China
- Kasikornbank (KBANK TB): Potential MSCI Inclusion
- SPH REIT Float Drops – Index Impacts To Come (Today and Beyond)
- SK IE Technology Placement – Last Deal Didn’t Do Well, More Discount and Cleanup Should Help
- MSCI August 2022 Index Rebalance Preview: The Last QIR?
FTSE All-World/All-Cap Sep Index Rebalance Preview: Asia Ex Japan Ex China
- The price review period for the FTSE All-World/All-Cap September 2022 SAIR ended on 30 June. The changes are expected to be announced on 19 August and implemented on 16 September.
- For Asia ex-Japan ex-China, we see 7 inclusions to All-World, 58 inclusions to All-Cap, 9 migrations from All-Cap to All-World, 5 migrations from All-World to All-Cap, and 20 deletions.
- There are quite a few names in Australia that could have same way flows from the S&P/ASX 200 and S&P/ASX 300 Index trackers on the same day as the FTSE trackers.
Kasikornbank (KBANK TB): Potential MSCI Inclusion
- Kasikornbank PCL (KBANK-R TB) was deleted from the MSCI Thailand Index in June 2021 following the issuance of NVDR’s approaching its permitted limit of 25% of issued shares.
- With 12 months since deletion complete and meeting market cap, liquidity and foreign room thresholds, Kasikornbank PCL (KBANK TB) could be added to the MSCI Thailand Index in August.
- If added to the MSCI Thailand Index, we estimate passive trackers will need to buy 47.39m shares (US$199m; 3.9 days of ADV) of Kasikornbank PCL (KBANK TB) on 31 August.
SPH REIT Float Drops – Index Impacts To Come (Today and Beyond)
- The SPH REIT Mandatory Chain Offer resulted in Cuscaden owning 61.68% of SPH REIT (SPHREIT SP)
- As per SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come, that meant substantial index downweights to come.
- One of those is today. Watch for a chunk of selling at the close.
SK IE Technology Placement – Last Deal Didn’t Do Well, More Discount and Cleanup Should Help
- SK IE Technology’s (SKIE) shareholder aims to raise around US$228m via selling their remaining shareholding.
- The same shareholder had sold some of their stake earlier in Nov 21. That deal didn’t end up doing well.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
MSCI August 2022 Index Rebalance Preview: The Last QIR?
- We see 8 potential inclusions and 1 potential deletion for the MSCI Standard index at the August QIR. Announcement on 12 August (Asia time) and implementation on 31 August.
- Largest passive inflows expected on Gcl Poly Energy (3800 HK), Kasikornbank (KBANK TB), Tianqi Lithium (002466 CH) and Qinghai Salt Lake Industry (000792 CH).
- There are a few of the China/ Hong Kong listed stocks that could have same way flows from the FTSE trackers a couple of weeks later at the September SAIR.
Before it’s here, it’s on Smartkarma
