In today’s briefing:
- MVIS Global Junior Gold Miners Index Rebalance: Few Large Weight Changes
- MVIS Global Rare Earth/Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added
- HK Connect SOUTHBOUND Flows (To 8Dec23); CNOOC & China Mobile Both Now To The Buy Side, Tencent Not
- Geminder Bumps. Pact Group Accepts
- Merdeka Battery Materials Lockup Expiry – US$1.5bn Lockup Expiry, Some Have Sold Beforehand
MVIS Global Junior Gold Miners Index Rebalance: Few Large Weight Changes
- There are no constituent changes for the VanEck Vectors Junior Gold Miners ETF (GDXJ US) in December, but there are float and capping changes for some stocks.
- Estimated one-way turnover is 2.8% and that leads to a one-way trade of US$122m.
- There are 13 stocks with over US$5m to trade from passive trackers, though the impact is not very big on the stocks.
MVIS Global Rare Earth/Strategic Metals Index Rebalance: Albermarle (ALB US) Finally Added
- Albemarle Corp (ALB US) will replace ioneer (INR AU) in the VanEck Rare Earth/Strategic Me (REMX US) at the close on 15 December.
- Constituent changes, float changes and capping changes result in an estimated one-way turnover is 13.4% and in a one-way trade of US$50m.
- The mainland China stocks in the index have been the biggest laggards and this rebalance will reduce their weight in the index significantly.
HK Connect SOUTHBOUND Flows (To 8Dec23); CNOOC & China Mobile Both Now To The Buy Side, Tencent Not
- SOUTHBOUND flows showing reversion tendencies continues for a second or third week after weeks of momentum.
- SOUTHBOUND saw HK$11.2bn of INFLOWS on the week, a chunk of which was net buys on HK-listed ETFs, but Hs underperformed their A counterparts in the H/A pairs once again.
- High-Div SOEs again saw action. This time with both CNOOC Ltd (883 HK)andChina Mobile (941 HK) seeing strong net buying as a percentage of volume. Tech was sold.
Geminder Bumps. Pact Group Accepts
- Back in September, plastic products manufacturer Pact Group Holdings (PGH AU) announced – and subsequently rejected – an unconditional off-market takeover of A$0.68/share from its major shareholder, Raphael Geminder.
- After a couple of Offer extensions, Geminder has now bumped its bid to A$0.84/share (a 24.4% premium to undisturbed), and declared terms final. Pacts is supportive of the revised offer.
- This is done and will trade at terms through to the Offer completion.
Merdeka Battery Materials Lockup Expiry – US$1.5bn Lockup Expiry, Some Have Sold Beforehand
- Merdeka Battery Materials (MBMA IJ) was listed on 18th Apr 2023, when it raised around US$591m in its Indonesian IPO. Its eight-month lockup will expire on 11th Dec 2023.
- MBMA owns one of the world’s largest nickel mines in terms of contained nickel at the Konawe Nickel Mine.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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