External broker reports(aggregated public sources), CardinalStone

CardinalStone

External broker reports(aggregated public sources)

CardinalStone is an independent, multi-asset investment management firm offering an assortment of financial services to a diverse institutional, high net worth and retail clientele base. The company began operations in June 2008 and its business is conducted across six divisions – Investment Banking, Asset Management, Securities Trading, Trust Services, Registrar Services and Financing. Headquartered in Lagos with offices in Abuja, Nigeria, the firm and its licensed subsidiaries diligently works with its clients to create bespoke solutions for their needs.

Macroeconomics

<ul><li>In September, global equities performances were largely shaped by key monetary policy decisions of major central banks, including the U.S. Federal Reserve, Bank of England, ECB, and Bank of Japan.</li><li>The dovish stance of the U.S. Federal Reserve, which initiated a 50-bps rate cut after 14 months of holding rates steady, fueled positive sentiments across some markets, pushing the MSCI World Index up by 1.69%.</li><li>Elsewhere, the MSCI Emerging Markets Index rose by 6.45%, supported by Chinese stimulus efforts.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

In September, global equities performances were largely shaped by key monetary policy decisions of major central banks, including the U.S. Federal Reserve, Bank of England, ECB, and Bank of Japan.The dovish stance of the U.S. Federal Reserve, which initiated a 50-bps rate cut after 14 months of holding rates steady, fueled positive sentiments across some markets, pushing the MSCI World Index up by 1.69%.Elsewhere, the MSCI Emerging Markets Index rose by 6.45%, supported by Chinese stimulus efforts.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

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

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tokyo-metro-co-ltd" target="_blank" data-smartkarma-citation="entities:40930:1" rel="noopener">Tokyo Metro (9023 JP)</a>'s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 23 October.</li>
<li>At the reported indicative IPO price of JPY 1100/share, <a href="https://www.smartkarma.com/entities/tokyo-metro-co-ltd" target="_blank" data-smartkarma-citation="entities:40930:1" rel="noopener">Tokyo Metro (9023 JP)</a> will be valued at JPY 639.1bn (US$4.49bn).</li>
<li>The stock should be added to one global index on 29 October, to the <a href="https://www.smartkarma.com/entities/tokyo-stock-exchange-tokyo-price-index-topix" target="_blank" data-smartkarma-citation="entities:22910:1" rel="noopener">TOPIX INDEX</a> on 28 November, while another global index inclusion will need to wait till February.</li>
</ul>



Tokyo Metro (9023 JP)'s listing has been approved by the JPX and the stock is expected to start trading on the Prime Market from 23 October.
At the reported indicative IPO price of JPY 1100/share, Tokyo Metro (9023 JP) will be valued at JPY 639.1bn (US$4.49bn).
The stock should be added to one global index on 29 October, to the TOPIX INDEX on 28 November, while another global index inclusion will need to wait till February.


Tokyo Metro (9023 JP) IPO:  TPX Inclusion in November; Global Indices: One in October, One in Feb

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>Policy shareholdings don't create tension in management and ensure the interests of minority shareholders. Secondly, holding shares that don't create value can burden capital profitability and undermine shareholder interests.</li>
<li>The increase in foreign ownership only changed the mindset of some company managers, but “TSE's request” was enough to awake managers who had become accustomed to being protected by cross-shareholdings.</li>
<li>If reducing policy shareholdings is viewed as HR issues related to the director election agenda, it makes sense why improvements haven't progressed similarly to the unclear nomination process for directors.</li>
</ul>


Policy shareholdings don't create tension in management and ensure the interests of minority shareholders. Secondly, holding shares that don't create value can burden capital profitability and undermine shareholder interests.
The increase in foreign ownership only changed the mindset of some company managers, but “TSE's request” was enough to awake managers who had become accustomed to being protected by cross-shareholdings.
If reducing policy shareholdings is viewed as HR issues related to the director election agenda, it makes sense why improvements haven't progressed similarly to the unclear nomination process for directors.


Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Cross Asset Strategy

<ul>
<li>Change in strategy by the Chinese authorities mean this is more than a trade</li>
<li>Sentiment, valuations and positioning are still supportive despite the rally</li>
<li>Overbought conditions in the very short-term and the technical picture is mixed </li>
</ul>


Change in strategy by the Chinese authorities mean this is more than a trade
Sentiment, valuations and positioning are still supportive despite the rally
Overbought conditions in the very short-term and the technical picture is mixed 


<ul>
<li>TSE's classification translates into three groups: companies which can independently increase capital profitability, companies which haven't yet fully implemented plans, and companies which haven't yet responded to “TSE's request.”</li>
<li>Mock engagements by TSE, which doesn't have voting rights, will be focused on whether they actually make the company think about management strategies and implement them, thereby increasing corporate value.</li>
<li>To help companies effectively implement “TSE's request,” an idea would be to offer time-limited discount on listing fee paid to TSE by companies that have significantly increased their market capitalization.</li>
</ul>


TSE's classification translates into three groups: companies which can independently increase capital profitability, companies which haven't yet fully implemented plans, and companies which haven't yet responded to “TSE's request.”
Mock engagements by TSE, which doesn't have voting rights, will be focused on whether they actually make the company think about management strategies and implement them, thereby increasing corporate value.
To help companies effectively implement “TSE's request,” an idea would be to offer time-limited discount on listing fee paid to TSE by companies that have significantly increased their market capitalization.


Will TSE's Mock Engagement Measures Work?

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

Monthly Equities - September 2024

In September, global equities performances were largely shaped by key monetary policy decisions of major central banks, including the U.S. Federal...

CardinalStone

Tokyo Metro (9023 JP) IPO: TPX Inclusion in November; Global Indices: One in October, One in Feb

Tokyo Metro (9023 JP) has announced the IPO price band of JPY 1100-1200/share. Book building starts today, and final pricing will be decided on 15...

Brian Freitas

Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors

I would like to discuss the issues on the August 22 Nikkei Shimbun article, “FSA Expands Disclosure Requirement to Prevent ‘Formal Dissolution’ of...

Metrical Inc

Examining the Bear Case for China

Chinese authorities shift strategy , and while sentiment and valuations support the rally, in short-term there are overbought conditions and a...

Rikki Malik

Will TSE's Mock Engagement Measures Work?

I would like to discuss the disclosure by TSE on August 19, “Current Status and Future TSE Measures Regarding ‘Measures to Achieve Management...

Metrical Inc

Monthly Equities - September 2024

In September, global equities performances were largely shaped by key monetary policy decisions of major central banks, including the U.S. Federal...

CardinalStone

Tokyo Metro (9023 JP) IPO: TPX Inclusion in November; Global Indices: One in October, One in Feb

Tokyo Metro (9023 JP) has announced the IPO price band of JPY 1100-1200/share. Book building starts today, and final pricing will be decided on 15...

Brian Freitas

Slow Policy Shareholdings Reduction Is Similar Backdrop to Unclear Nomination Process for Directors

I would like to discuss the issues on the August 22 Nikkei Shimbun article, “FSA Expands Disclosure Requirement to Prevent ‘Formal Dissolution’ of...

Metrical Inc

Examining the Bear Case for China

​Chinese authorities shift strategy , and while sentiment and valuations support the rally, in short-term there are overbought conditions and a...

Rikki Malik

Will TSE's Mock Engagement Measures Work?

I would like to discuss the disclosure by TSE on August 19, “Current Status and Future TSE Measures Regarding ‘Measures to Achieve Management...

Metrical Inc

Chinese authorities shift strategy , and while sentiment and valuations support the rally, in short-term there are overbought conditions and a...