In today’s briefing:
- MSCI May Index Rebalance Preview: Potential FIF Changes & Impact
- KOSPI 200 Rebalancing D-60: Names for Position Buildups
- Uranium: Fuelling Fears
- GoTo IPO Trading – A Test for the Domestic Market
- TOPIX Inclusion: Bewith (9216 JP)
MSCI May Index Rebalance Preview: Potential FIF Changes & Impact
- MSCI comprehensively evaluates the free float for stocks at the May SAIR. The changes will be announced on 12 May and implemented at the close on 31 May.
- We expect an increase in the FIF for some stocks. Largest inflows are expected on Tencent (700 HK), Kuaishou Technology (1024 HK), JD Health (6618 HK) and KakaoBank (323410 KS).
- There is reasonably large short interest on some of the stocks and there could be some short covering on stocks where there could be large passive inflows.
KOSPI 200 Rebalancing D-60: Names for Position Buildups
- Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.
- Six additions for position buildups: F&F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), & K Car (381970 KS)
- Six deletions for position buildups: Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), & Poongsan Corp (103140 KS)
Uranium: Fuelling Fears
- Russia’s invasion of Ukraine is forcing the US and European administrations to wrestle with the vulnerabilities in their uranium supply chains.
- The situation is also re-emphasising the spotlight on the future role of nuclear energy in the power grids.
- Uranium prices are up 44% since the invasion began, with the price for nuclear fuel at a decade high.
GoTo IPO Trading – A Test for the Domestic Market
- GoTo was initially aiming to raise around US$1.25bn from a local listing. It managed to raise US$960m after downsizing its deal and pricing close to the midpoint.
- GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
- In this note, we’ll talk about the trading dynamics of the deal.
TOPIX Inclusion: Bewith (9216 JP)
- Japan-Based BPO company Bewith (9216 JP) was listed in the First Section (now known as the “Prime” Market) of the Tokyo Stock Exchange (TSE) on 2nd March 2022.
- When a company gets listed in the TSE First Section, it subsequently gets included in the TOPIX Index requiring TOPIX-tracking funds to purchase the stock during an Inclusion Event.
- Usually, this presents interesting trading opportunities to generate sharp market-neutral returns in the space of few trading days. Below is a look at the details for Bewith’s Inclusion Event.
Before it’s here, it’s on Smartkarma
