US-EU Index Rebalances / Quantitative Researcher

Dimitris Ioannidis

Global Financial Data and Analytics Platform

ORTEX

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kering" target="_blank" data-smartkarma-citation="entities:21492:1" rel="noopener">Kering (KER FP)</a> is the main candidate for direct deletion as it is the only constituent below the exit threshold. Forecasted supply is $750m and 9.7 ADV.</li>
<li>
<a href="https://www.smartkarma.com/entities/dsm-firmenich-ag" target="_blank" data-smartkarma-citation="entities:43730:1" rel="noopener">DSM-Firmenich (DSFIR NA)</a> is the main candidate for addition replacing <a href="https://www.smartkarma.com/entities/kering" target="_blank" data-smartkarma-citation="entities:21492:1" rel="noopener">Kering (KER FP)</a> as it is the highest ranked non-constituent. Forecasted demand is $1.3bn and 22.5 ADV.</li>
<li>
<a href="https://www.smartkarma.com/entities/nokia-oyj" target="_blank" data-smartkarma-citation="entities:21754:1" rel="noopener">Nokia OYJ (NOKIA FH)</a> and <a href="https://www.smartkarma.com/entities/volkswagen-ag-2754ab9c-fd60-43d7-a087-b4ce4465a0eb" target="_blank" data-smartkarma-citation="entities:734:1" rel="noopener">Volkswagen (Pref) (VOW3 GR)</a> are only 2% above the exit threshold. Potential replacements are <a href="https://www.smartkarma.com/entities/engie-sa" target="_blank" data-smartkarma-citation="entities:21449:1" rel="noopener">Engie SA (ENGI FP)</a> and <a href="https://www.smartkarma.com/entities/argenx-se" target="_blank" data-smartkarma-citation="entities:28604:1" rel="noopener">Argenx SE (ARGX US)</a>.</li>
</ul>



Kering (KER FP) is the main candidate for direct deletion as it is the only constituent below the exit threshold. Forecasted supply is $750m and 9.7 ADV.

DSM-Firmenich (DSFIR NA) is the main candidate for addition replacing Kering (KER FP) as it is the highest ranked non-constituent. Forecasted demand is $1.3bn and 22.5 ADV.

Nokia OYJ (NOKIA FH) and Volkswagen (Pref) (VOW3 GR) are only 2% above the exit threshold. Potential replacements are Engie SA (ENGI FP) and Argenx SE (ARGX US).


EURO STOXX 50: Kering Out of Fashion with $750M Deletion. DSM-Firmenich In with $1.3B Addition.

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.</li>
<li>In this insight, we take a look at Quiddity's estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.</li>
<li>We have been tracking these movements for several months and it seemed like index changes were unlikely to take place but our expectations have changed now.</li>
</ul>


The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
In this insight, we take a look at Quiddity's estimation of the latest ranks of potential ADDs and DELs for the upcoming index rebal event in September 2024.
We have been tracking these movements for several months and it seemed like index changes were unlikely to take place but our expectations have changed now.


Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nokia-oyj" target="_blank" data-smartkarma-citation="entities:21754:1" rel="noopener">Nokia OYJ (NOKIA FH)</a> is currently the lowest ranked security in SX5E but still above the exit threshold. Its potential deletion can cause the addition of <a href="https://www.smartkarma.com/entities/dsm-firmenich-ag" target="_blank" data-smartkarma-citation="entities:43730:1" rel="noopener">DSM-Firmenich (DSFIR NA)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/deutsche-post-ag" target="_blank" data-smartkarma-citation="entities:21608:1" rel="noopener">Deutsche Post (DHL GR)</a> &amp; <a href="https://www.smartkarma.com/entities/reckitt-benckiser-group-plc" target="_blank" data-smartkarma-citation="entities:22105:1" rel="noopener">Reckitt Benckiser (RKT LN)</a> are below the SX5P exit threshold. Their deletion can cause the addition of <a href="https://www.smartkarma.com/entities/intesa-sanpaolo-spa" target="_blank" data-smartkarma-citation="entities:21200:1" rel="noopener">Intesa Sanpaolo (ISP IM)</a> &amp; <a href="https://www.smartkarma.com/entities/banco-bilbao-vizcaya-argentari" target="_blank" data-smartkarma-citation="entities:21251:1" rel="noopener">Banco Bilbao (BBVA SM)</a> .</li>
<li>
<a href="https://www.smartkarma.com/entities/cap-gemini-sa" target="_blank" data-smartkarma-citation="entities:21411:1" rel="noopener">Cap Gemini SA (CAP FP)</a> and <a href="https://www.smartkarma.com/entities/compass-group-plc" target="_blank" data-smartkarma-citation="entities:21880:1" rel="noopener">Compass (CPG LN)</a> are examples of companies with significant market caps which are excluded due to supersector coverage. </li>
</ul>



Nokia OYJ (NOKIA FH) is currently the lowest ranked security in SX5E but still above the exit threshold. Its potential deletion can cause the addition of DSM-Firmenich (DSFIR NA). 

Deutsche Post (DHL GR) &amp; Reckitt Benckiser (RKT LN) are below the SX5P exit threshold. Their deletion can cause the addition of Intesa Sanpaolo (ISP IM) &amp; Banco Bilbao (BBVA SM) .

Cap Gemini SA (CAP FP) and Compass (CPG LN) are examples of companies with significant market caps which are excluded due to supersector coverage. 


STOXX 50: First September Forecasts for Europe and Eurozone

Switzerland

DSM-Firmenich AG is an innovator in nutrition, health, and beauty products. The Company reinvents, manufactures, and combines vital nutrients, flavors, and fragrances. DSM-Firmenich serves customers worldwide.

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DSM-Firmenich (DSFIR NA)

EURO STOXX 50: Kering Out of Fashion with $750M Deletion. DSM-Firmenich In with $1.3B Addition.

DSM-Firmenich (DSFIR NA) is forecasted to be added to SX5E with a demand of $1.3B as a replacement of Kering (KER FP) with a forecasted supply of...

Dimitris Ioannidis

Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money

There could be 23 days of volume to buy in DSM-Firmenich and 15 days of volume to sell in Nokia as things stand. However, this is a low-conviction...

Janaghan Jeyakumar, CFA

STOXX 50: First September Forecasts for Europe and Eurozone

In SX5E, Nokia might be replaced by DSM-Firmenich, while in SX5P Reckitt Benckiser and Deutsche Post may be replaced by Intesa Sanpaolo and Banco...

Dimitris Ioannidis

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EURO STOXX 50: Kering Out of Fashion with $750M Deletion. DSM-Firmenich In with $1.3B Addition.

DSM-Firmenich (DSFIR NA) is forecasted to be added to SX5E with a demand of $1.3B as a replacement of Kering (KER FP) with a forecasted supply of...

Dimitris Ioannidis

Quiddity Leaderboard ES50 Sep 24: Billion Dollar Flows Now in the Money

There could be 23 days of volume to buy in DSM-Firmenich and 15 days of volume to sell in Nokia as things stand. However, this is a low-conviction...

Janaghan Jeyakumar, CFA

STOXX 50: First September Forecasts for Europe and Eurozone

​In SX5E, Nokia might be replaced by DSM-Firmenich, while in SX5P Reckitt Benckiser and Deutsche Post may be replaced by Intesa Sanpaolo and Banco...

Dimitris Ioannidis

In SX5E, Nokia might be replaced by DSM-Firmenich, while in SX5P Reckitt Benckiser and Deutsche Post may be replaced by Intesa Sanpaolo and Banco...