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

Dian Swastatika Sentosa / Index Rebalance

<ul>
<li>There is 1 constituent change for the IDX30 Index, and 5 changes each for the LQ45 Index and IDX80 Index to be implemented at the close on 30 April.</li>
<li>Following their inclusion on the High Shareholding Concentration list, <a href="https://www.smartkarma.com/entities/pt-barito-renewables-energy-tbk" target="_blank" data-smartkarma-citation="entities:40150:1" rel="noopener">Barito Renewables Energy (BREN IJ)</a> and <a href="https://www.smartkarma.com/entities/dian-swastatika-sentosa-tbk" target="_blank" data-smartkarma-citation="entities:15281:1" rel="noopener">Dian Swastatika Sentosa (DSSA IJ)</a> will be deleted from the LQ45 and IDX80 indices.</li>
<li>While the size of the passive AUM is small, a lot of active funds use the LQ45 Index as a benchmark and could sell BREN/DSSA before the global index trackers.</li>
</ul>


There is 1 constituent change for the IDX30 Index, and 5 changes each for the LQ45 Index and IDX80 Index to be implemented at the close on 30 April.
Following their inclusion on the High Shareholding Concentration list, Barito Renewables Energy (BREN IJ) and Dian Swastatika Sentosa (DSSA IJ) will be deleted from the LQ45 and IDX80 indices.
While the size of the passive AUM is small, a lot of active funds use the LQ45 Index as a benchmark and could sell BREN/DSSA before the global index trackers.


IDX30/​​LQ45/IDX80 Index Rebalance: BREN and DSSA Deleted from Local Indices

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul>
<li>SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.</li>
<li>
Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…</li>
</ul>


SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.

Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…


Average 19% YTD Gain in Key Mining Stocks

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>As part of a new transparency drive - predicated on MSCI concerns - Indonesia's IDX flagged nine companies with a high shareholder concentration. All with lofty outperformances to match.</li>
<li>The list included Indo's third largest market cap company, coal producer <a href="https://www.smartkarma.com/entities/dian-swastatika-sentosa-tbk" target="_blank" data-smartkarma-citation="entities:15281:1" rel="noopener">Dian Swastatika Sentosa (DSSA IJ)</a>, with an eye-watering trailing PER of 136x. DSSA is backed by the Widjaja family.</li>
<li>
<a href="https://www.smartkarma.com/entities/pt-barito-renewables-energy-tbk" target="_blank" data-smartkarma-citation="entities:40150:1" rel="noopener">Barito Renewables Energy (BREN IJ)</a>, Indo's second-largest company, also made the cut. I've previously flagged this bubble stock in <a href="https://skr.ma/P9wjq" target="_blank" rel="noopener">StubWorld: Barito Renewables (BREN IJ) - This Too Shall Pop.</a>
</li>
</ul>


As part of a new transparency drive - predicated on MSCI concerns - Indonesia's IDX flagged nine companies with a high shareholder concentration. All with lofty outperformances to match.
The list included Indo's third largest market cap company, coal producer Dian Swastatika Sentosa (DSSA IJ), with an eye-watering trailing PER of 136x. DSSA is backed by the Widjaja family.

Barito Renewables Energy (BREN IJ), Indo's second-largest company, also made the cut. I've previously flagged this bubble stock in StubWorld: Barito Renewables (BREN IJ) - This Too Shall Pop.



IDX's Bubble Stocks: Enhanced Reporting Regs Partly Address Investability Concerns

Barito Renewables Energy / Index Rebalance

<ul>
<li>Minimum free float has been set at 15% with a timeline for companies to get there. A list of stocks with High Shareholding Concentration has also been released.</li>
<li>There could be 6 deletions from a global index in May with few other stocks having free float reductions. Estimated passive selling in Indonesia is US$1.3bn.</li>
<li>The changes to the free float thresholds and the improved disclosure brings Indonesia in line with other markets in Asia and should allay global index providers concerns.</li>
</ul>


Minimum free float has been set at 15% with a timeline for companies to get there. A list of stocks with High Shareholding Concentration has also been released.
There could be 6 deletions from a global index in May with few other stocks having free float reductions. Estimated passive selling in Indonesia is US$1.3bn.
The changes to the free float thresholds and the improved disclosure brings Indonesia in line with other markets in Asia and should allay global index providers concerns.


Indonesia: Updated Disclosures Could Lead to Multiple Deletions & Float Decreases in May

Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
​
More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Macroeconomics

<div class="content-highlight">The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for investors.</div> We live in a world where investors are uncertain about asset values both in financial and non-financial companies.  Whilst a lot is written about the nature of bad debts at banks, little has been comprehensively written about the balance sheets of non-financial companies.We see the following evidence in our analysis: <ul><li><div class="content-highlight">The failure of some…</div></li></ul>

The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for investors. We live in a world where investors are uncertain about asset values both in financial and non-financial companies.  Whilst a lot is written about the nature of bad debts at banks, little has been comprehensively written about the balance sheets of non-financial companies.We see the following evidence in our analysis: The failure of some…

Indonesia

Chandra Asri Pacific is Southeast Asia's leading energy, chemical, and infrastructure solutions company. It operates Indonesia's largest integrated petrochemical complex, producing olefins, polyolefins, styrene monomer, and butadiene, used in various industrial applications. The company also provides energy, water, logistics, ports, and storage services. Headquartered in Jakarta, Indonesia, the company was founded in 1984.

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Chandra Asri Pacific (TPIA IJ)

IDX30/LQ45/IDX80 Index Rebalance: BREN and DSSA Deleted from Local Indices

Barito Renewables and Dian Swastatika Sentosa are deletions from local indices this week. Passive tracking AUM is small but active managers use the...

Brian Freitas

Average 19% YTD Gain in Key Mining Stocks

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold...

Singapore Exchange Ltd (SGX)

IDX's Bubble Stocks: Enhanced Reporting Regs Partly Address Investability Concerns

Barito Pacific (BRPT IJ) and Barito Renewables Energy (BREN IJ) are both uninvestable.As is Dian Swastatika Sentosa (DSSA IJ). IDX still has...

David Blennerhassett

Indonesia: Updated Disclosures Could Lead to Multiple Deletions & Float Decreases in May

Min free float raised to 15% and companies given time to get there. High Shareholding Concentration list is out. There could be 6 deletions in May...

Brian Freitas

Beware Impairments in EM and Asia

The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for...

Mark Artherton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

IDX30/​​LQ45/IDX80 Index Rebalance: BREN and DSSA Deleted from Local Indices

Barito Renewables and Dian Swastatika Sentosa are deletions from local indices this week. Passive tracking AUM is small but active managers use the...

Brian Freitas

Average 19% YTD Gain in Key Mining Stocks

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold...

Singapore Exchange Ltd (SGX)

IDX's Bubble Stocks: Enhanced Reporting Regs Partly Address Investability Concerns

Barito Pacific (BRPT IJ) and Barito Renewables Energy (BREN IJ) are both uninvestable.As is Dian Swastatika Sentosa (DSSA IJ). IDX still has...

David Blennerhassett

Indonesia: Updated Disclosures Could Lead to Multiple Deletions & Float Decreases in May

Min free float raised to 15% and companies given time to get there. High Shareholding Concentration list is out. There could be 6 deletions in May...

Brian Freitas

Beware Impairments in EM and Asia

The failure to use or the aggressive implementation of asset write downs in emerging markets and Asia will have far reaching implications for...

Mark Artherton

IDX30/LQ45/IDX80 Index Rebalance: BREN and DSSA Deleted from Local Indices