In today’s briefing:
- Fortescue Placement – Discount Appears Attractive, but Momentum Has Been Very Weak
- NIFTY100 Low Volatility 30 Index Rebalance Preview: Four Changes in September
- Oil Rig Uptick Boosts US Total Rig Count
- Commodity Popcorn Markets // Coffee Bubble About To Burst?
Fortescue Placement – Discount Appears Attractive, but Momentum Has Been Very Weak
- An undisclosed shareholder is looking to raise US$1.25bn (A$1.91bn) from selling some stake in Fortescue Metals (FMG AU).
- The deal is a large one to digest at 13 days of the stock’s three month ADV. The selling shareholder will be locked up for 45 days.
- In this note, we run the deal through our ECM framework and comment on deal dynamics.
NIFTY100 Low Volatility 30 Index Rebalance Preview: Four Changes in September
- The review period for the Nifty 100 Low Volatility 30 Index ends in August. The changes will be announced mid-September and implemented at the close on 27 September.
- Four potential constituent changes, volatility changes and capping changes will result in one-way turnover of 16% resulting in a one-way trade of INR 6.71bn (US$80m).
- Three of the four potential deletions are due to a change in the index universe and there will be selling from other passive trackers too.
Oil Rig Uptick Boosts US Total Rig Count
- US oil and gas rig count increased by three to 589 for the week ending 26/Jul, rising for the second consecutive week.
- US oil rig count rose by 5 to 482, marking the first increase since May. Gas rigs fell by 2 to 101, following a rise of 3 the previous week.
- In July, the total US rig count increased by 8, the first monthly rise since February and the largest since November 2022.
Commodity Popcorn Markets // Coffee Bubble About To Burst?
- Commodity Popcorn Markets During the week, I saw a tweet by the legendary commodities trader Peter Brandt.
- The technical part of Kucrop Analytics institutional commodity research arm is heavily influenced by Peter Brands Research, as well as Larry Williams Research.
Both look at markets very different and have a strong track record.
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