In today’s briefing:
- Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?
- Japan CorpGovReports: TSE “Mgmt Conscious Blah Blah” (Mar25),
Read TSE Update Doc 3 - India’s Worst Accounting Scandals
- Ever-Vigilant CRISIL, India Rating Downgrade Firm – After Default
- Nifty Index Options Weekly (Feb 24 – 28): Down Trend Accelerates
- NIFTY Set for a Modest Rally from Current Lows
- Buybacks Surge as Earnings Season Nears End
- Lucror Analytics – Morning Views Asia
- New World Development – Earnings Flash – H1 FY 2024-25 Results – Lucror Analytics
Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?
- If brokers let shorts exceed borrow, TRS end investors risk getting caught in the legal crossfire.
- Some TRS players are setting up short-book systems and reg numbers proactively, ensuring brokers share borrow data to stay ahead of any compliance risks.
- With most illegal shorts tied to TRS, and TRS dominating the market, the FSS will likely introduce TRS-specific rules rather than granting exemptions.
Japan CorpGovReports: TSE “Mgmt Conscious Blah Blah” (Mar25), Read TSE Update Doc 3
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 161 new CGRs were filed in February 2025. Our tools show every report, links to every document, and now a new diff file tool. Input a name, see the changes.
- THE BIG NEWS: The “Document 3” (linked below) of the TSE’s 20th Council Meeting 18 Feb is worth reading carefully. This will set the stage for more takeover fun.
India’s Worst Accounting Scandals
- Learn about India’s worst accounting fraud, including Yes Bank, Satyam Computer, Kingfisher and others in this report.
- Misappropriation features prominently in these scandals, in addition to fraudulent reporting and corporate governance failure.
- Siphoning of funds from bank loans, in particular, has been a common feature of Indian corporate malfeasance.
Ever-Vigilant CRISIL, India Rating Downgrade Firm – After Default
- Crisil Ltd (CRISIL IN) and India Rating Downgrade AGS Transact Technologies (AGSTRA IN) to ‘D’ from “A/Stable’ post a default
- Rating agencies exist to anticipate events such as defaults and not react after being informed of a default
- Rating agencies ignored poor fundamentals of AGS Transact Technologies (AGSTRA IN) in 2QFY2025 results which clearly and publicly revealed deteriorating cash flows and a high-risk financial strategy
Nifty Index Options Weekly (Feb 24 – 28): Down Trend Accelerates
- Sell-Off continues with all four trading days this week registering losses.
- 1M Implied vols firmed on the sharp move lower but remain capped at 14 for the time being.
- March seasonality positive for Nifty which might help reverse the trend in the second half of the month.
NIFTY Set for a Modest Rally from Current Lows
- Our latest insight on the NIFTY Index (NIFTY INDEX) recognized the possibility of obstacles against a rally from the index’s lows.
- The index has fallen for another 2 weeks from there, now it is very oversold and a relief rally could begin this week or the next.
- Profit targets for this relief rally are in the 23100 area, but unfortunately the forecast is maximum 3 weeks up, not really a bullish pattern…
Buybacks Surge as Earnings Season Nears End
- Institutions were net sellers of Singapore stocks, with a net outflow of S$265 million from Feb 21-27, 2025.
- DBS Group Holdings led share buybacks with 350,000 shares at S$46.73 each; total buybacks amounted to S$31,062,634.
- Wilmar International’s FY24 core net profit declined 26% to US$1.16 billion, with sales volume growth in most divisions.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: Yanlord Land, Lenovo
- In the US, January personal spending unexpectedly declined 0.2% m-o-m (0.2% e / 0.8% revised p), driven by an outsized drop in motor vehicle purchases, as well as decreases in categories such as recreational goods amid the harsh winter weather. Meanwhile, personal income rose 0.9% m-o-m (0.4% e / 0.4% p).
- Separately, the PCE inflation data for January was in line with estimates, showing a slight deceleration on a y-o-y basis. The PCE price index rose 2.5% y-o-y (2.5% e / 2.6% p) and 0.3% m-o-m (0.3% e / 0.3% p) in January, while the core PCE price index (the Fed’s preferred measure of inflation) advanced 2.6% y-o-y (2.6% e / 2.9% revised p) and 0.3% mo-m (0.3% e / 0.2% p).
New World Development – Earnings Flash – H1 FY 2024-25 Results – Lucror Analytics
- New World Development’s (NWD) H1/24-25 results were weak.
- The company reported another large net loss of HKD 6.6 bn (after a HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.
- Moreover, the underlying business performance remained soft, as operating profit (excluding one-off items) fell 18% y-o-y.
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