Category

Financials

Financials: Tokyo Stock Exchange Tokyo Price Index Topix, Bitcoin and more

By | Daily Briefs, Financials

In today’s briefing:

  • Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed
  • On-Chain Financial Analysis

Reason for the Declining Concentration of June AGM Dates in Japan Is Likely Mixed

By Aki Matsumoto

  • While we want to believe that “increased awareness of corporate governance has led to downward trend in the concentration of AGM dates,” in reality they were spread over 3 days.
  • The use of the platform for electronic exercise of voting rights has made progress since it was included in the listing criteria for the prime market.
  • The provision of convocation notices in English has not made much progress since it was not specifically stated in the Corporate Governance Code, which was included in the listing criteria.

On-Chain Financial Analysis

By Etherbridge

  • On-chain analysis can provide investors with an edge when it comes to assessing where the market is and where it may go, providing better risk/reward opportunities than someone who is just purely looking at price. 
  • However, most of the data that is currently available focuses on layer one protocols. This leaves a huge gap when it comes to assessing projects further up the blockchain stack.
  • This is where something like Token Terminal fits in. Token Terminal is a platform that aggregates financial data on blockchains and the decentralised applications that run on a blockchain. 

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Financials: Korea Stock Exchange Kospi 200 Index and more

By | Daily Briefs, Financials

In today’s briefing:

  • Buying the Most Unloved Asian Market

Buying the Most Unloved Asian Market

By Thomas Schroeder

  • Korea is a market we have been shorting from the summer of 2021 and just turned long near compelling physical support.
  • Closed short positions from 366 and 353 for gains of 20% and 15%. A rally opportunity should open up if the global cycle gets a few lifts in July.
  • 300 price support from 2020-21 previous highs and lows makes for a natural platform for short covering that may lead to a move to 324/328 where noted retracements lie.

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Financials: K Bank, Vietnam International JSB and more

By | Daily Briefs, Financials

In today’s briefing:

  • K Bank: The First Internet-Only Bank In Korea
  • Vietnam International Commercial Joint Stock Bank (VIB VN – Buy) – Update report – Undervalued

K Bank: The First Internet-Only Bank In Korea

By Douglas Kim

  • K Bank is the first Internet-only bank in Korea. K Bank is the second largest Internet bank in Korea after KakaoBank (323410 KS).
  • K Bank had revenues of 282.1 billion won (up 263.6% YoY) and operating profit of 24.5 billion won (turned black YoY) in 2021.
  • The recent declines in major cryptocurrencies are likely to have a negative impact on K Bank which could delay its IPO until 2023.

Vietnam International Commercial Joint Stock Bank (VIB VN – Buy) – Update report – Undervalued

By Mirae Asset Securities

Vietnam International Commercial Joint Stock Bank (HOSE: VIB)

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.

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Financials: JPY, Kasikornbank PCL, Tokyo Stock Exchange Tokyo Price Index Topix, Grupo Financiero Banorte, Itau CorpBanca and more

By | Daily Briefs, Financials

In today’s briefing:

  • USDJPY Disconnect
  • KBANK : Return to Normal Operations
  • The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step
  • CitiBanamex – Potential Bidders Get Serious, We Stay Cautious on Banorte
  • Itaú Corpbanca – Contrarian Buy Idea in the Andean Banks

USDJPY Disconnect

By Shyam Devani

  • The slip in US yields has lead the US_Japan yield spread to move lower thereby putting USDJPY out of line with it
  • The danger is that once month end is over, USDJPY may “catch up” by trending down in the short term
  • In addition we see price action developments on USDJPY itself that reflects weakness in the uptrend

KBANK : Return to Normal Operations

By Pi Research

  • Maintain BUY for KBANK with a target price of Bt174.00. We are optimistic about the joint venture between KBANK and JMT. Going forward, we expect KBANK’s profitability to increase 
  • A joint venture between KBANK and JMT:  KBANK joined with JMT Network (JMT) in establishing JK Asset Management Co., Ltd. (JK AMC). The establishment of JK AMC will allow KBANK 
  • KBANK plans to sell NPLs of Bt50bn to JK AMC within 2022, which will alleviate KBANK’s future NPLs, improve net interest margin (NIM), and reduce potential provisions 

The Adoption of the Presence of Female Directors as a Criterion for Voting Was Finally a First Step

By Aki Matsumoto

  • I would like to discuss the Nikkei article, “Japanese asset management companies have decided to steer against a proposal to elect directors for companies that do not have female directors.
  • The reason why major Japanese investment managers have been reluctant to take action on diversity and governance is likely due to the sales policies of their parent companies,
  • Companies with higher percentage of women directors the boards have higher stock prices. I would like to encourage both investment managers and companies to accelerate their efforts in the future.

CitiBanamex – Potential Bidders Get Serious, We Stay Cautious on Banorte

By Victor Galliano

  • Banorte and Santander have both hired M&A advisors for a potential Citibanamex bid, according to Reuters; Banco Azteca is not participating in the bidding, whilst Inbursa is potentially still interested
  • In the event of a bid, we do not expect Santander to be aggressive on price; Banorte could be more aggressive, which would increase its chances of a winning bid
  • Were Banorte to acquire Citibanamex, we continue to believe that its prospective dividend could be at risk; in essence, the risks of M&A still outweigh the potential opportunities

Itaú Corpbanca – Contrarian Buy Idea in the Andean Banks

By Victor Galliano

  • Itaú Corpbanca operates in Chile and Colombia, with the recent win by Colombian presidential candidate Gustavo Petro hitting Colombian share prices, including Itaú Corpbanca
  • Nonetheless, we see some evidence of fundamental recovery from a bottom up perspective in the case of Itaú Corpbanca, despite the political headwinds
  • We rate Itaú Corpbanca as a contrarian buy; it is an emerging recovery stock, unloved and undervalued by the market but with a firmer balance sheet base and returns recovering

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Financials: Ethereum, S&P 500, Celsius Network and more

By | Daily Briefs, Financials

In today’s briefing:

  • Smartkarma Webinar | DeFi Options Protocols
  • Is Bear Market over? Probably not
  • Containing Contagion

Smartkarma Webinar | DeFi Options Protocols

By Smartkarma Research

For our next Webinar, we are delighted to welcome back Analyst Alec Tseung who will talk about the fundamental ideas of DeFi options protocols. Alec will introduce and go through the key aspects of the three currently leading protocols: Opyn Squeeth (OSQTH CURNCY), Ribbon Finance (RBN CURNCY), and Dopex (DPX CURNCY).

The webinar will be hosted on Wednesday, 6 July 2022, 17:00 SGT/HKT.

Alec is a Fintech & EM-focused Analyst. He previously spent time with Tencent, where he was responsible for the group’s investments in the overseas markets (Southeast Asia, the Middle East, and Europe). Prior to Tencent, he was in the Principal Investments team at Swiss Re, where he focused on driving the group’s investments into financial services and Fintech sectors in APAC. He has been responsible for a wide range of investments and transactions (venture/growth, buyout, direct secondaries, etc.) totalled >$5 billion.


Is Bear Market over? Probably not

By Market Radar

  • June: another painful month. The first half of June has been very tough. When markets understood that a 75 bps rate hikes was coming, they quickly reacted and the result has been a new sell-off.
  • The S&P 500 officially entered into bear market.
  • At the beginning, the 10-year Treasury Yield rose at a level close to 3.5%, but then it quickly went down:

Containing Contagion

By Coinstack

  • Three Arrows Capital Liquidation Ordered By Court – A court in the British Virgin Islands (BVI) has appointed financial advisory firm Teneo to handle the liquidation of troubled crypto hedge fund Three Arrows Capital (3AC).
  • Celsius Clashes With Own Lawyers Over Chapter 11 Bankruptcy – Celsius, dogged by a liquidity crisis for weeks, has been resisting guidance from its own lawyers to file for Chapter 11 bankruptcy.
  • Harmony’s $100M Hack From Compromised Multi-Sig Scheme – On June 23 the Harmony development team announced that $100 million was siphoned from the Horizon bridge.

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Financials: Bank of Kyoto, S&P 500, Thai Life Insurance, HKEX, KB Financial, Tokyo Stock Exchange Tokyo Price Index Topix, BRL, RHB Bank Bhd and more

By | Daily Briefs, Financials

In today’s briefing:

  • Bank of Kyoto – Trading the Holdco Range
  • SPX Risk on July Trade
  • Thai Life Insurance IPO – Can’t Pinpoint the Upside
  • ETFs in Stock Connect: List Announced; Effective 4 July
  • KRX Banks Index (KODEX ETF): September Rebalancing Preview
  • Challenge Is How to Promote Sustainability in a Japanese Company that Has Inadequate Human Resources
  • The Hump and Kink in Brazil’s Yield Curve to Become More Pronounced
  • Malaysian Banks Screener; RHB Bank Is Our Top Pick

Bank of Kyoto – Trading the Holdco Range

By Travis Lundy

  • Bank of Kyoto has twice changed/improved its capital governance in the past six months.
  • Silchester International Investors wants it to do more, asking for a small special dividend at tomorrow’s AGM. I don’t think it will get it. 
  • The holdco is now a better holdco trade than it was 6mos ago, and trading the range is the right way to look at it. 

SPX Risk on July Trade

By Thomas Schroeder

  • RTY was the favored long bet at 1,650 and SPX near 3,700/25. NDX 11k was our low call to cover shorts.
  • Call was for a ST top Monday for a give back (often hard) and then an upside re test to form a bigger tactical high.
  • Risk looks more favorable to buy US dips in July with Europe and Asia trailing. Inflation expectations have come off (bear commodity call) and been replaced with recession risk.

Thai Life Insurance IPO – Can’t Pinpoint the Upside

By Sumeet Singh

  • Thai Life Insurance (TLI) is looking to raise up to US$975m in its upcoming Thailand IPO. Cornerstone investors including GIC have taken up around 54% of the deal.
  • Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
  • In this note we will talk about the deal dynamics and run the deal through our ECM framework.

ETFs in Stock Connect: List Announced; Effective 4 July

By Brian Freitas

  • CSRC and SFC have approved the inclusion of eligible ETFs in Stock Connect and trading of the ETFs under Stock Connect would begin from 4 July.
  • There are 4 ETFs included in Southbound Stock Connect, while there are 83 ETFs that have been included in Northbound Stock Connect.
  • Under Stock Connect, only secondary trading is allowed in the ETFs with no creations or redemptions permitted. This will have implications for short-term and long-term repo on the HSI/HSCEI/HSTECH indices.

KRX Banks Index (KODEX ETF): September Rebalancing Preview

By Sanghyun Park

  • The index targets the GICS Financials/Banks sector stocks: 12 stocks belong to this sector. Then nine of these are currently included in the KRX Banks.
  • Compared to the last rebalancing, where we had Kakao Bank’s inclusion event, the impact size for the upcoming rebalancing will likely be significantly reduced.
  • The last rebalancing showed that the directional correlation between passive flow and price movement was high. So, we can still consider a Long/Short Day Trade even with this impact size.

Challenge Is How to Promote Sustainability in a Japanese Company that Has Inadequate Human Resources

By Aki Matsumoto

  • I would like to discuss the Nikkei article titled “EY Survey Legal Managers on Awareness of Sustainable Society.”
  • The survey also included responses from Japanese companies, stating that “many legal departments in Japanese companies do not have sufficient systems in place to deal with ESG and other issues.
  • The question is how seriously management is discussing how to deal with these issues, as many Japanese companies do not have sufficient human resources, not only in their legal departments. 

The Hump and Kink in Brazil’s Yield Curve to Become More Pronounced

By Gautam Jain, PhD, CFA

  • With the Brazilian central bank approaching the end of its aggressive monetary tightening cycle, the rate curve has taken a unique shape that features a hump and a kink.
  • The hump should get more pronounced because the rate-cutting cycle should be deeper than currently priced because real rates are quite elevated and growth risks are high.
  • The kink should also get more prominent as the curve should steepen further out due to fiscal risks irrespective of who wins the upcoming presidential election.

Malaysian Banks Screener; RHB Bank Is Our Top Pick

By Victor Galliano

  • The six Malaysian banks have healthy capital adequacy ratios, healthy credit quality and adequate NPL coverage; increased tourism should support GDP, positive cost of risk trends and loan growth demand
  • We like RHB, with its attractive post-provision profitability and sound cost of risk trends, whilst also trading on attractive multiples versus peers and on a relatively low PEG
  • We also like big-cap Maybank with its reasonable valuations; combined with a prospective earnings recovery due to contained risk costs, this could drive a re-rating, after lacklustre share returns

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Financials: Samsung Kodex Banks ETF, Life Insurance Corp of India (LIC), Binance Coin and more

By | Daily Briefs, Financials

In today’s briefing:

  • A Guide to Thematic Equity ETFs in Korea for Uncrowded Flow Trading Opportunities
  • S&P BSE Quiddity Leaderboard Dec 2022: LIC, Shriram Finance, Tata Motors, Dr Reddy’s, & More
  • Sporting Crypto – June 27th 2022: Cristiano Ronaldo Signs Exclusive NFT Deal with Binance

A Guide to Thematic Equity ETFs in Korea for Uncrowded Flow Trading Opportunities

By Sanghyun Park

  • Korea’s local ETF market has experienced explosive growth in recent years. Over the past year, total ETF net assets have increased by 42%.
  • As a result, the flow impact they have on the market is growing significantly. So, we are now in great need to thoroughly investigates the local equity ETF market.
  • Hence, this post looks at the thematic ETFs, which are still somewhat overlooked by the market, thus providing uncrowded flow trading opportunities.

S&P BSE Quiddity Leaderboard Dec 2022: LIC, Shriram Finance, Tata Motors, Dr Reddy’s, & More

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices for the December 2022 Rebalance.
  • Life Insurance Corp of India (LICI IN) will be added to BSE 200 and BSE 500 at the end of this week. Below are more details on this.
  • In addition, I have discussed some trading opportunities with interesting potential index flow dynamics.

Sporting Crypto – June 27th 2022: Cristiano Ronaldo Signs Exclusive NFT Deal with Binance

By Sporting Crypto

  • The TL/DR – Ronaldo and Binance struck a multi-year agreement NFT agreement, which will see the creation of a series of NFT collections for sale on the company’s platform, with the first coming later this year.
  • Binance are the biggest crypto exchange in the world. By a considerable distance.
  • If you look at the spot trading on their exchange for crypto, it gazumps the juggernaut that is FTX by almost 7 times over.

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Financials: Thai Life Insurance, Tokyo Stock Exchange Tokyo Price Index Topix, Bitcoin and more

By | Daily Briefs, Financials

In today’s briefing:

  • Thai Life Insurance IPO: Valuation Insights
  • “Global ESG Funds Invest Less in Japanese Equities.” Why Is This?
  • Reading On-Chain Data

Thai Life Insurance IPO: Valuation Insights

By Arun George


“Global ESG Funds Invest Less in Japanese Equities.” Why Is This?

By Aki Matsumoto

  • I would like to discuss about the Nikkei article that says “The number of global ESG funds investing in Japanese equities is low.
  • The actual substance of their initiatives hasn’t reached certain level, their information disclosure is insufficient for overseas investors, and their investment returns are inferior to those of other portfolio companies.
  • These improvements can be made by the managers themselves. However, ironically, greenwashing has not been an issue in Japan due to the lack of proactive disclosure of ESG-related information.

Reading On-Chain Data

By Etherbridge

  • Over the next couple of weeks, we will cover a new series titled Bear Market Tactics.
  • Bear markets are never easy to navigate as an investor in crypto; more often than not, you have to deal with price swings greater than those in the traditional market and sift through a wider variety of investment options that may have very little to no investment value. 
  • So how does one begin to understand where this market is headed, or when is a good time to start investing? 

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Financials: Kakao Pay and more

By | Daily Briefs, Financials

In today’s briefing:

  • Kakao Pay: MSCI Will Likely to Continue to Treat Alipay as a Strategic Investor

Kakao Pay: MSCI Will Likely to Continue to Treat Alipay as a Strategic Investor

By Douglas Kim

  • In our view, MSCI will likely to continue to treat Alipay as a strategic investor in Kakao Pay (377300 KS). 
  • This will likely result in a failed inclusion of Kakao Pay in the next round of MSCI Korea Index rebalance.
  • We also make a comparison to Kakao Pay-Alipay with another block sale involving Kakao Games Corp (293490 KS) and Netmarble Corporation (251270 KS).

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Financials: Korea Stock Exchange Kospi 200 Index and more

By | Daily Briefs, Financials

In today’s briefing:

  • Korea May Continue to Fail MSCI DM Inclusion Unless Allowing for K200 Options Listing on SGX

Korea May Continue to Fail MSCI DM Inclusion Unless Allowing for K200 Options Listing on SGX

By Sanghyun Park

  • The KRX and the MSCI have not agreed on the full right to use the KRX indexes’ price information. This should be the essential cause of Korea’s failed DM inclusion.
  • The MSCI wants to list the KOSPI 200 Options on the SGX, which the MSCI sees as a prerequisite for taking the lead in the Korean passive market.
  • Suppose the government takes a forward-looking approach to this issue. In that case, we may see the K200 Options SGX listing that has a bigger market impact before DM inclusion.

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