In today’s briefing:
- IDX30/LQ45 Index Rebalance: BIG Impact Changes in Limited Time
- LG Energy Solution IPO: First Day Trading Strategy Amid Market Turmoil
- LG Energy IPO Trading – Allocations, Index, and Updates
- Solactive Global Uranium & Nuclear Components Index Rebalance: Most Adds in Oz
- S&P/ASX Indices: Quiddity Primer
IDX30/LQ45 Index Rebalance: BIG Impact Changes in Limited Time
- At the January review, there are 2 changes to the IDX30 Index, 5 changes to the LQ45 Index, and 9 changes to the IDX30 Index.
- Largest buying impact will be on Sumber Alfaria Trijaya Tbk Pt, Emtek (EMTK IJ), Waskita Karya (Persero) (WSKT IJ), BFI Finance Indonesia (BFIN IJ) and XL Axiata (EXCL IJ).
- Largest selling impact will be on Ace Hardware Indonesia (ACES IJ), Jasa Marga (JSMR IJ), Pakuwon Jati (PWON IJ) , Bumi Serpong Damai (BSDE IJ) and HM Sampoerna (HMSP IJ).
LG Energy Solution IPO: First Day Trading Strategy Amid Market Turmoil
- In this insight, we discuss the first day trading strategy of LG Energy Solution amid market turmoil.
- Due to the recent risk-off sentiment, the prudent course of action would be to take a more moderate upside view on how much LG Energy Solution’s stock price could overshoot.
- Our base case valuation for LG Energy Solution (373220 KS) remains 424,093 won per share, which is 41% higher than the IPO price of 300,000 won.
LG Energy IPO Trading – Allocations, Index, and Updates
- LG Energy Solution (373220 KS) (LGES) raised US$10.8bn in its South Korea IPO, after pricing at the top-end of the IPO price range .
- LGES is the EV battery unit of LG Chem and it was spun off in December last year. The company is a major supplier to customers including Tesla and GM.
- LGES will be included into MSCI and KOSPI. But MSCI’s fast entry could likely be scheduled with February’s quarterly review which will be effective only on 1st of March.
Solactive Global Uranium & Nuclear Components Index Rebalance: Most Adds in Oz
- Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index. There are 8 adds and 1 delete with implementation at the close on 4 February.
- Prior to the rebalance, BHP Billiton (BLT LN) will be deleted at the close on 28 January following Unification with BHP Group (BHP AU).
- The flows on the stocks are small, but there is a big impact on the inclusions in Australia. Global X Uranium ETF (URA US) will buy around 5.5% of float.
S&P/ASX Indices: Quiddity Primer
- 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 this insight, we take a brief look at the constituent selection methodology for the capitalization-weighted indices which include ASX 300, ASX 200, ASX 100, ASX 50, and ASX 20.
- There is also a discussion on the historical price performance of Index Rebalance Events in the run up to the Inclusion Event and in the Post-Inclusion Phase.
Before it’s here, it’s on Smartkarma
