In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI STD/SC, FTSE AW/AC, EPRA, MVIS, TW50, Mindtree/L&T, AMFI
- Japan Post Holdings (6178 JP) – Ugly Group Forecasts But a Very Bigly Buyback
- NIFTY50 Index Rebalance Preview: High Probability Add; Impact Higher than the Headline Numbers
- Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- ECM Weekly (15th May 22) – LIC, ThaiBev, Delhivery, One Store, Yunkang, VistaREIT, Ngern Tid Lor
Index Rebalance & ETF Flow Recap: MSCI STD/SC, FTSE AW/AC, EPRA, MVIS, TW50, Mindtree/L&T, AMFI
- MSCI announced the changes to the Standard and Small Cap Indexes, along with FIF/NOS changes as part of the May SAIR. Plenty of flows in Asia Pacific.
- Announcement of changes to the FTSE AW/AC, HSI INDEX, HSCEI INDEX, HSTECH INDEX and SENSEX INDEX will be made after market close on Friday.
- There were inflows into Taiwan, Australia and Hong Kong focused ETFs, while there were redemptions from China and Korea focused ETFs.
Japan Post Holdings (6178 JP) – Ugly Group Forecasts But a Very Bigly Buyback
- Japan Post Holdings (6178 JP) and its two main components Japan Post Insurance (7181 JP) and Japan Post Bank (7182 JP) reported excellent earnings for the year to March 2022…
- ….but not so excellent forecasts for the year to March 2023. Some of that is conservative. Some is “finger-in-the-air”, and some of it is the vagaries of insurance sales accounting.
- But they all pay high dividends and Japan Post Holdings announced a ¥200bn buyback. And remember, there will likely Never Be Another JPH Equity Offering, Ever Again. Ever.
NIFTY50 Index Rebalance Preview: High Probability Add; Impact Higher than the Headline Numbers
- We are past the halfway mark in the review period of the NIFTY Index (NIFTY INDEX) September rebalance. We see one potential change which should be announced end August.
- There is a high probability of Adani Enterprises (ADE IN) being included in the index, while either Shree Cement (SRCM IN) or Hero Motocorp (HMCL IN) will be deleted.
- The impact of passive fund trading on the stocks is high in terms of days of ADV, but very high in terms of delivery volume.
Hitachi Maxell (6810 JP) – Very Big On-Market Buyback
- Maxell Ltd (6810 JP) has been restructuring itself and the cost-cutting and rationalising of sales efforts and regions has led to post-relisting record OP.
- But another (non-cash) write-off this past year has led to the third year of net losses in a row.
- The company has, however, taken its actual cashflows and turned them into a large buyback
ECM Weekly (15th May 22) – LIC, ThaiBev, Delhivery, One Store, Yunkang, VistaREIT, Ngern Tid Lor
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPOs front, LIC’s lists tomorrow, while Delhivery’s bookbuild wasn’t great.
- There were no major placements this week, with even Air New Zealand failing to hold its deal price.
Before it’s here, it’s on Smartkarma
