Brian Freitas

Periscope Analytics

Event-Driven

<ul>
<li>No changes for Asia Pacific at the MSCI Annual Market Classification Review. Lots of improvements needed for Korea to move from EM to DM in June 2025 at the earliest.</li>
<li>Lots of changes expected for the HSCI and S&amp;P/ASX family in September. <a href="https://www.smartkarma.com/entities/emperador-inc" target="_blank" data-smartkarma-citation="entities:3485:1" rel="noopener">Emperador Inc (EMP PM)</a> and <a href="https://www.smartkarma.com/entities/sumber-alfaria-trijaya-tbk-pt" target="_blank" data-smartkarma-citation="entities:15659:1" rel="noopener">Sumber Alfaria Trijaya Tbk Pt (AMRT IJ)</a> are potential FTSE inclusions in September.</li>
<li>
<a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services Holdings Limited (873 HK)</a> started trading on Thursday and MSCI has announced the deletion of the stock from the MSCI China Index at the close on 27 June.</li>
</ul>

<ul>
<li>MSCI has announced changes to the Small Cap Index. For Asia Pacific, there are 207 adds and 270 deletes. Most adds are in India, most deletes are in Japan.</li>
<li>Flows are not huge, but there is a big impact on a lot of stocks. There was a big move post announcement with inclusions outperforming deletions in almost all markets.</li>
<li>There are a lot of stocks that crossover with changes on other indices and there will be same way flow on a lot of stocks over the next few weeks.</li>
</ul>

<ul>
<li>There could be one change to the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> in July following the privatisation of <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a>. </li>
<li>Then there will be a whole bunch of changes to the S&amp;P/ASX 100 Index, <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> and S&amp;P/ASX 300 Index in September as part of the regular rebalance. </li>
<li>There is large short interest on a couple of the potential adds and a lot of the potential deletes. That will drive stock price moves closer to implementation.</li>
</ul>

Arun George

Global Equity Research Ltd

<ul>
<li>The ACCC’s Statement of Issues noted “significant preliminary competition concerns” in relation to Dye &amp; Durham/DND’s acquisition of <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>. The findings will be announced on 8 September.</li>
<li>There is no easy fix. We think that satisfying the ACCC requires a <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a> stake disposal which could trigger a material adverse clause.</li>
<li>Link aims to proceed with the 13 July scheme meeting but this is a broken deal. While our SoTP suggests upside, there are no short-term positive catalysts.</li>
</ul>

David Blennerhassett

Quiddity Advisors

<ul>
<li>This transaction is looking increasingly toast. The ACCC has outlined significant preliminary competition concerns with Dye &amp; Durham’s (D&amp;D) proposed acquisition of <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>.</li>
<li>Separately, Link's subsidiary, Link Fund Solutions Limited, has been notified that an application for a "Group Litigation Order" has been filed in the English High Court. </li>
<li>Link has to exit <a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA</a> for this transaction to proceed. But how badly do D&amp;D want PEXA? Will they walk? Time to look at Link fundamentally, separate from D&amp;D's Offer.</li>
</ul>

Australia

PEXA Group Ltd operates as an investment holding company.

PEXA Group - PXA AU

Description