In today’s briefing:
- MSCI August 2022 Index Rebalance Preview: The Last QIR?
- HSI Index Rebalance Preview: Finding the Balance
- FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- TPG Telecom Possible Selldown – Founder Could Look to Raise up to US$1bn with a Clean Exit
- Link Admin Mulls Dye & Durham’s Upped Bid
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.
HSI Index Rebalance Preview: Finding the Balance
- Currently at 69 constituents, it is unlikely that we reach 80 member by year end. Hang Seng Indexes is finding it tough to reach the target by excluding unprofitable companies.
- We list 11 stocks that could be added to the index in September – with one-way turnover just over 5%, the actual number of inclusions will be lower.
- There are a few potential inclusions where short interest is over 5% of the free float. These stocks could see short covering ahead of announcement of the changes.
FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- The FTSE TWSE Taiwan Dividend+ Index is an index of stocks with the highest dividend yields in the universe of the FTSE TWSE Taiwan 50 and Mid-Cap 100 Indices.
- According to our estimates, the historical average return for index rebalance trades seems to be extremely attractive and the potential volume impact can be significant too.
- We feel this is one of the most interesting esoteric indices in the Asia-Pacific region for index rebalance trades.
TPG Telecom Possible Selldown – Founder Could Look to Raise up to US$1bn with a Clean Exit
- TPG Telecom was formed by a merger of Vodafone and TPG in Jul 2020. The merger resulted in the shares owned by Vodafone, Hutchison and DavidTeoh, being put in escrow.
- The lockup on those shares will expire this month. David Teoh, TPG’s founder, has sold some stock before in Dec 21 and could look to exit his remaining shareholding.
- In this note, we talk about the upcoming lock-up release and its dynamics.
Link Admin Mulls Dye & Durham’s Upped Bid
- Dye & Durham (D&D) has bumped its offer for Link Administration (LNK AU) to $4.57/share after its prior revised $4.30/share bid was rejected.
- Link shareholders may also receive an additional A$0.13 from the sale of the Banking and Credit Management (BCM) business under the latest offer.
- Link said it will consider the proposal and continue to engage with D&D.
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