Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>With the review period for the September rebalance of the <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> complete, we take a look at the potential inclusions and exclusions for the index.</li>
<li>The conclusions of the market consultation have been announced and that will mean we switch to a semi-annual rebalance. So we take a look at potential changes in March 2023.</li>
<li>The announcement of the changes for the next rebalance should be made in the first week of September and will be implemented at the close on 30 September.</li>
</ul>


With the review period for the September rebalance of the Nikkei 225 (NKY INDEX) complete, we take a look at the potential inclusions and exclusions for the index.
The conclusions of the market consultation have been announced and that will mean we switch to a semi-annual rebalance. So we take a look at potential changes in March 2023.
The announcement of the changes for the next rebalance should be made in the first week of September and will be implemented at the close on 30 September.


Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Nikkei 225 Annual Review is in September based on end-July data. Jumping the gun, I propose 3 additions and 3 deletions with granular data and details offered per sector.</li>
<li>I see ¥600bn to buy and a funding trade of 99% of that. There are 15+ names with more than 1 day of ADV to sell (funding only).</li>
<li>The impact on Real World Float is non-negligible. One name in particular is deserving of attention. </li>
</ul>


The Nikkei 225 Annual Review is in September based on end-July data. Jumping the gun, I propose 3 additions and 3 deletions with granular data and details offered per sector.
I see ¥600bn to buy and a funding trade of 99% of that. There are 15+ names with more than 1 day of ADV to sell (funding only).
The impact on Real World Float is non-negligible. One name in particular is deserving of attention. 


Nikkei 225 Sep Annual Review Predictions - 3 In, 3 Out

<ul>
<li>The <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225 (NKY INDEX)</a> market consultation released last week could lead to some tweaks to the index methodology and the stock selection process. Nothing really material enough though.</li>
<li>Potential index inclusions in September are <a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics</a>, <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land</a> and <a href="https://www.smartkarma.com/entities/pan-pacific-international-holdings-corporation" target="_blank" data-smartkarma-citation="entities:13475:1" rel="noopener">Pan Pacific International Holdings</a>, while <a href="https://www.smartkarma.com/entities/toyobo-co-ltd" target="_blank" data-smartkarma-citation="entities:6187:1" rel="noopener">Toyobo Co Ltd</a>, <a href="https://www.smartkarma.com/entities/nippon-light-metal-holdings" target="_blank" data-smartkarma-citation="entities:1485:1" rel="noopener">Nippon Light Metal</a> and <a href="https://www.smartkarma.com/entities/oki-electric-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:2181:1" rel="noopener">Oki Electric Industry</a> are potential index deletions.</li>
<li>Passive <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909:1" rel="noopener">Nikkei 225</a> trackers will need to buy between 4-9% of the real float on the high/ medium probability names, while they need to buy between 2.5-14 days of ADV.</li>
</ul>


The Nikkei 225 (NKY INDEX) market consultation released last week could lead to some tweaks to the index methodology and the stock selection process. Nothing really material enough though.
Potential index inclusions in September are Renesas Electronics, Oriental Land and Pan Pacific International Holdings, while Toyobo Co Ltd, Nippon Light Metal and Oki Electric Industry are potential index deletions.
Passive Nikkei 225 trackers will need to buy between 4-9% of the real float on the high/ medium probability names, while they need to buy between 2.5-14 days of ADV.


Nikkei 225 Index Rebalance Preview: Market Consultation & Potential Changes

<div>
<p>Today after the close, <a href="https://www.smartkarma.com/entities/2181" target="_blank" data-smartkarma-citation="entities:2181:1">Oki Electric Industry Co Ltd (6703 JP)</a> announced a Tender Offer to take out the minorities in its subsidiary <a href="https://www.smartkarma.com/entities/8504" target="_blank" data-smartkarma-citation="entities:8504:1">Oki Electric Cable Co Ltd (5815 JP)</a>.</p>
<p>This would not be abnormal. Parent companies taking out subsidiaries in Japan has a long history, and I expect it will continue as corporate governance strictures demand that more time, money, and effort be spent to keep dual listings alive. </p>
<h2>But It's An Odd Thing...</h2>
</div><p>The parent is paying a premium of <em>just 3%</em> over last traded price…</p>


Today after the close, Oki Electric Industry Co Ltd (6703 JP) announced a Tender Offer to take out the minorities in its subsidiary Oki Electric Cable Co Ltd (5815 JP).
This would not be abnormal. Parent companies taking out subsidiaries in Japan has a long history, and I expect it will continue as corporate governance strictures demand that more time, money, and effort be spent to keep dual listings alive. 
But It's An Odd Thing...
The parent is paying a premium of just 3% over last traded price…

Equity Bottom-Up

<p>My piece on <a href="https://www.smartkarma.com/entities/391" target="_blank" data-smartkarma-citation="entities:391">Sharp Corp</a> last week titled <a href="https://www.smartkarma.com/insights/a-tragicomedy-of-errors-dealing-with-sharp-sharpish" target="_blank" data-smartkarma-citation="insights:2212">A Tragicomedy of Errors - Dealing with Sharp Sharpish</a> pointed out that the major players (The Banks, The INCJ/JDI, METI, The Employees, Samsung, Hon Hai, and others) would all likely rather see existing minority shareholders thrown under the bus than see their interests further maligned. The piece discussed the relatively dire situation facing Sharp. I pointed out that effectively ALL the remaining debt was in the form of loans due within the year…</p>

My piece on Sharp Corp last week titled A Tragicomedy of Errors - Dealing with Sharp Sharpish pointed out that the major players (The Banks, The INCJ/JDI, METI, The Employees, Samsung, Hon Hai, and others) would all likely rather see existing minority shareholders thrown under the bus than see their interests further maligned. The piece discussed the relatively dire situation facing Sharp. I pointed out that effectively ALL the remaining debt was in the form of loans due within the year…

Lost in Translation - A 500bn Yen Deal for Sharp?

Japan

Oki Electric Industry Company, Limited, develops, produces, and sells a broad range of communication and information related equipment.  The Company's products include personal computers (PCs), PC peripheral equipment, and electronic devices such as semiconductors and automated teller machines (ATMs). Oki Electric Industry also provides installation and maintenance services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Oki Electric Industry (6703 JP)

Nikkei 225 Index Rebalance Preview: Consultation Conclusions & Potential Changes in Sep & March

The market consultation conclusion were confirmed last week. We expect 3 changes to the index in September and another 3 in March. The adds/deletes...

Brian Freitas

Nikkei 225 Sep Annual Review Predictions - 3 In, 3 Out

The September Nikkei 225 Rebal announcement is ~ 6 weeks away. Assuming the current plans go through, I see three adds, three deletes. The adds are...

Travis Lundy

Nikkei 225 Index Rebalance Preview: Market Consultation & Potential Changes

Based on the market consultation and the new liquidity measure, we have Renesas Electronics, Oriental Land and Pan Pacific International Holdings...

Brian Freitas

Odd OKI Electric Cable Offer (TOB)

Today after the close, Oki Electric Industry Co Ltd (6703 JP) announced a Tender Offer to take out the minorities in its subsidiary Oki Electric...

Travis Lundy

Lost in Translation - A 500bn Yen Deal for Sharp?

My piece on Sharp Corp last week titled A Tragicomedy of Errors - Dealing with Sharp Sharpish pointed out that the major players (The Banks, The...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)