Daily Brief Australia: Goodman Group, BHP Group Ltd, Sigma Healthcare and more

• After a minor “disaster” in a secondary placement in December, this morning industrial/infrastructure (including data centres) REIT/etc Goodman Group (GMG AU) announced results and an A$4bn primary offering.
• The large offering comes at a 6.9% discount, and For a combination of reasons, there is a LOT of buying to do with index tracking over the next short while. 
• But that too has complications. Some is immediate. Some a little delayed. A bunch may be supplied by short sellers. There is one easy trade. A few more complicated.

• Goodman Group (GMG AU) is looking to raise around US$2.5bn to partly fund its data centre expansion plans.
• Goodman’s shares have performed exceptionally well over the past year, driven by its pivot towards data centers.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Discussion on recent acquisitions and earnings highlights in the resource sector
• Focus on BHP’s South Australian copper business and potential growth opportunities
• Analysis of return on capital employed for different assets within BHP’s portfolio

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• With 6 days left to review cutoff, there are 2 potential adds and 3 potential deletions for the MV Australia Equal Weight Index at the March rebalance.
• Even if there are no constituent changes, capping changes will lead to one-way turnover of 3% and a round-trip trade of A$159m.
• The final list of inclusions/exclusions will depend on price movements till next Friday and whether the provider makes any significant changes to the free float of stocks in the universe.