In today’s briefing:
- MSCI August 2022 Index Rebalance Preview: The Last QIR?
- MCT SP as MPACT Creeping Ever Higher Vs Peers
- Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%
- JAPAN ACTIVISM: Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
- SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing
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.
MCT SP as MPACT Creeping Ever Higher Vs Peers
- Mapletree Commercial Trust (MCT SP) has crept higher vs the Peer Baskets, especially in the last 4-6 weeks as Other S-REITs have weakened.
- This sets the stage for a potentially large flowback into S-REITs as a class coming in a few weeks.
- It may be time to reconsider positioning, looking at where MPACT has been and will be.
Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%
- As a result of market acquisitions, the Offeror for Hwa Hong Corp (HWAH SP) now holds 30.0%, triggering a mandatory general offer (MGO).
- Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer.
- The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.
JAPAN ACTIVISM: Silchester’s Bank of Kyoto AGM Results – Activism Still Failing
- Silchester, after holding Bank of Kyoto (8369 JP) shares 16 years, becoming the largest investor, FINALLY publicly asked the bank to make a gesture to pay out a tiny special div.
- The bank rejected them, but they took it to to the AGM. And there Silchester got rejected by the shareholders. Soundly. Hostile activism is not going to be easy here.
- But all is not lost. Since December, the bank has raised its payout ratio to 50% and has promised to cut a piece of its cross-holdings in the MTMP.
SKIET Block Deal: Passive Impact on TIGER (WISE) Secondary Cell ETF Rebalancing
- This block deal won’t lead to a float increase event. Nevertheless, it will substantially impact the rebalancing of the TIGER (WISE) Secondary Cell ETF next week.
- A passive net inflow of up to ₩10B occurs, equivalent to 0.5x ADTV. Indeed, this level provides a significant day trade setup.
- With today’s price correction, SKIET’s index weight will drop to the high 4% range. Applying the 36% float to today’s price will increase the weight to 5.5% at the rebalancing.
Before it’s here, it’s on Smartkarma
