Daily Brief Financials: Bank Central Asia, HSBC Holdings, Insignia Financial and more

In today’s briefing:

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices
HSBC (5 HK) Earnings on 30 July: Price Action and Option Strategies
(Mostly) Asia-Pac M&A: Pacific Ind., Insignia Fin., PointsBet, New World Res., Frasers Hospitality

IDX30/LQ45/IDX80 Index Rebalance: Changes Across the Indices

There are 2 constituent changes each for the IDX30 Index and the LQ45 Index, and 3 constituent changes for IDX80 Index to be implemented at the close on 31 July.
The largest passive flows are expected in Bank Central Asia, Bank Rakyat Indonesia, PT Adaro Andalan Indonesia, Mitra Adiperkasa, XLSMART Telecom Sejahtera, Indo Tambangraya Megah and Bank Mandiri Persero.
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.

Context: Index heavyweight HSBC (5 HK) / HSBC (HSBA LN) is set to report Interim Results 2025 on 30 July at 12:00 HKT — during the Hong Kong trading lunch break.
Expected Move: Historical data reveals HSBC‘s announcement-day moves are significantly larger than average, with options currently pricing in a remarkably aligned ± 2.2% implied move.
Actionable Strategies: Understand the potential for amplified volatility and explore actionable option strategies leveraging the distinctive term structure around earnings.

I tally 38 – mostly firm, mostly Asia-Pac – arb transactions currently being discussed and analysed on Smartkarma.
One new deal was discussed on Smartkarma this week – Pacific Industrial (7250 JP)‘s Tender Offer. Although I’m expecting an Offer for Cromwell Property (CMW AU).
Key updates/news took place on Insignia Financial (IFL AU), PointsBet Holdings (PBH AU), New World Resources (NWC AU), Shandong Fengxiang (9977 HK), Frasers Hospitality Trust (FHT SP).

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