Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Some low liquidity stocks in the TOPIX Index carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.</li>
<li>These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will enjoy buying flows from passive trackers of TOPIX.</li>
<li>In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2023.</li>
</ul>


Some low liquidity stocks in the TOPIX Index carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will enjoy buying flows from passive trackers of TOPIX.
In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2023.


TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Post FY23 results in mid-February, Appier's stock exhibited significant volatility, despite robust financial performance.</li>
<li>We believe that Appier is a beneficiary of continued growth in ecommerce and increasing ubiquity of AI solutions for marketing.  </li>
<li>Appier trades at a significant discount to global peers and domestic SaaS companies, suggesting significant upside</li>
</ul>


Post FY23 results in mid-February, Appier's stock exhibited significant volatility, despite robust financial performance.
We believe that Appier is a beneficiary of continued growth in ecommerce and increasing ubiquity of AI solutions for marketing.  
Appier trades at a significant discount to global peers and domestic SaaS companies, suggesting significant upside


Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS.  US Equities rebound led by Tech as NVIDIA +7% gets boost from MS report; China troubles persist: Country Garden suspends bond trading; Foreign Investors losing interest in China</li>
<li>JAPAN. NKY Futures +0.7% vs Cash; USDJPY 145.5;  Yen Weakens be beyond 145 to USD, heads to 146 on widening spreads; JP M&amp;A Boom as Cos seek improvements; Dentsu Miss</li>
<li>NUGGET. Activism-Japanese Firms Expect It ! June's Reuters survey of companies in Japan revealed this fact. At the very minimum, an implicit acknowledgement that there is room for improvement</li>
</ul>


OVERSEAS.  US Equities rebound led by Tech as NVIDIA +7% gets boost from MS report; China troubles persist: Country Garden suspends bond trading; Foreign Investors losing interest in China
JAPAN. NKY Futures +0.7% vs Cash; USDJPY 145.5;  Yen Weakens be beyond 145 to USD, heads to 146 on widening spreads; JP M&amp;A Boom as Cos seek improvements; Dentsu Miss
NUGGET. Activism-Japanese Firms Expect It ! June's Reuters survey of companies in Japan revealed this fact. At the very minimum, an implicit acknowledgement that there is room for improvement


Ohayo Japan| Tech Lead in Equity Rebound Amid Concerns; NUGGET: Activism-Japanese Firms Expect It !

<ul>
<li>The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. </li>
<li>For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. </li>
<li>Every April, the application of this liquidity factor is reviewed by the TSE. In this insight, we take an early look at what could happen in April 2023.</li>
</ul>


The Tokyo Stock Exchange (TSE) calculates Free-Float Weight (FFW) for each listed company and uses this value as a key component of TOPIX Index Calculation. 
For companies with "low liquidity" the FFW will be multiplied by a fixed liquidity factor of 0.75 to derive the final FFW used for index calculation. 
Every April, the application of this liquidity factor is reviewed by the TSE. In this insight, we take an early look at what could happen in April 2023.


TOPIX Index Upweights: An Early Preview Of "The Big April Basket" 2023

<ul>
<li>OVERSEAS: SPX +1.3% SOX +1.3%; Optimism on soft inflation print drives stocks; Consumer+Tech lead; Apple to introduce touch screens for Mac; Off-Shore Wind Giant Vesta leads in Europe</li>
<li>JAPAN: NKY Futs +0.3% vs Cash; USDJPY steady at ¥132.45; Biz lobby urgest firms to lift wages above inflatio;  Buy U/G in Lastertec, TEL,  Nexon and D/G to Nintendo </li>
<li>DAILY NUGGETS:  Fast Retailing has raised the bar for corporate Japan with with their wage hikes. </li>
</ul>


OVERSEAS: SPX +1.3% SOX +1.3%; Optimism on soft inflation print drives stocks; Consumer+Tech lead; Apple to introduce touch screens for Mac; Off-Shore Wind Giant Vesta leads in Europe
JAPAN: NKY Futs +0.3% vs Cash; USDJPY steady at ¥132.45; Biz lobby urgest firms to lift wages above inflatio;  Buy U/G in Lastertec, TEL,  Nexon and D/G to Nintendo 
DAILY NUGGETS:  Fast Retailing has raised the bar for corporate Japan with with their wage hikes. 


Good Morning Japan |Beta Rally Continues as Optimism Reigns Ahead of CPI Print

Japan

Appier Group, Inc. provides artificial intelligence software as a service (AISaaS) services based on data-driven decisions. The Company offers data analysis for potential users predicting and acquiring, relationships building and maintaining, purchasing and action motivation, audience intelligence, and more. Appier Group serves clients across Asian.

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Appier Group (4180 JP)

TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

This insight (from Feb 2023) discusses the annual TOPIX Liquidity Factor (LF) removal event (which we call the "Big April Basket"). It might be a...

Janaghan Jeyakumar, CFA

Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...

Mark Chadwick

Ohayo Japan| Tech Lead in Equity Rebound Amid Concerns; NUGGET: Activism-Japanese Firms Expect It !

US Big Cap Tech leads amid concerns; NKY Futures +0.7% vs Cash; USDJPY 145.5; Yen Weakens be beyond 145 to USD, heads to 146 on widening spreads;...

Mark Chadwick

TOPIX Index Upweights: An Early Preview Of "The Big April Basket" 2023

Daiei Kankyo, Socionext, Sun* , Mercari, Loadstar Capital, Bewith, Medley, and Appier Group are our high-conviction names that could see their...

Janaghan Jeyakumar, CFA

Good Morning Japan |Beta Rally Continues as Optimism Reigns Ahead of CPI Print

OVERSEAS. Optimism on soft inflation drives stocks. JAPAN: Biz lobby urgest firms to lift wages above inflation; Buy U/G in Lastertec, TEL, Nexon....

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

TOPIX Index Upweights: Final Predictions for The "The Big April Basket” 2023

This insight (from Feb 2023) discusses the annual TOPIX Liquidity Factor (LF) removal event (which we call the "Big April Basket"). It might be a...

Janaghan Jeyakumar, CFA

Appier (4180) | A Volatile Stock Despite Solid SaaS Metrics

​Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...

Mark Chadwick

Ohayo Japan| Tech Lead in Equity Rebound Amid Concerns; NUGGET: Activism-Japanese Firms Expect It !

US Big Cap Tech leads amid concerns; NKY Futures +0.7% vs Cash; USDJPY 145.5; Yen Weakens be beyond 145 to USD, heads to 146 on widening spreads;...

Mark Chadwick

TOPIX Index Upweights: An Early Preview Of "The Big April Basket" 2023

Daiei Kankyo, Socionext, Sun* , Mercari, Loadstar Capital, Bewith, Medley, and Appier Group are our high-conviction names that could see their...

Janaghan Jeyakumar, CFA

Good Morning Japan |Beta Rally Continues as Optimism Reigns Ahead of CPI Print

OVERSEAS. Optimism on soft inflation drives stocks. JAPAN: Biz lobby urgest firms to lift wages above inflation; Buy U/G in Lastertec, TEL, Nexon....

Mark Chadwick

Appier's stock shows volatility post FY23 results despite strong financials, benefiting from ecommerce growth and AI marketing solutions. Trading...