In today’s briefing:
- STTF Index Rebalance: Keppel DC REIT Replaces Jardine Cycle & Carriage
- FnGuide Sector ETF Boom: Sniffing Out Uncrowded Flow Trades
- [Quiddity Index Jun25] S&P500/600 Jun25 Rebal: Final Predictions APP and IBKR
- Cross-Border Capital: BAMI, Brussels, and the Battle for Banking Integration
- Relative Value Opportunity: Bank of India (BOI IN) Vs. Union Bank of India (UNBK IN)
STTF Index Rebalance: Keppel DC REIT Replaces Jardine Cycle & Carriage
- Keppel DC REIT (KDCREIT SP) will replace Jardine Cycle & Carriage (JCNC SP) in the SPDR Straits Times Index ETF (STTF SP) at the close on 20 June.
- The SPDR Straits Times Index ETF (STTF SP) will need to trade between 3-5 days of ADV in the add and delete.
- The ETF trading could help Keppel DC REIT (KDCREIT SP) break out of its short-term downtrend and could add further pressure on Jardine Cycle & Carriage (JCNC SP).
FnGuide Sector ETF Boom: Sniffing Out Uncrowded Flow Trades
- Korea’s ETF market just hit KRW 200T AUM — doubling in under 2 years. ETFs now make up ~10% of KOSPI’s cap and over half its daily trading volume.
- FnGuide dominates Korea’s sector theme ETF space, capturing ~KRW 9T of the KRW 14T market — far ahead of KRX — with momentum accelerating in early 2025.
- FnGuide’s rebalancing process is drawing more trader interest lately, with rising inquiries suggesting faster market learning — prompting earlier pre-positioning in sector ETF flow trades.
[Quiddity Index Jun25] S&P500/600 Jun25 Rebal: Final Predictions APP and IBKR
- The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
- The rankings used for the June 2025 index rebal event will be based on yesterday’s (4th June 2025) opening prices. The announcement will be after the close on Friday.
- In this insight, we take a look at our final expectations for ADDs/DELs (along with a tracker of all live spinoff/M&A events which affect the index the next two quarters).
Cross-Border Capital: BAMI, Brussels, and the Battle for Banking Integration
- BAMI’s standalone upside remains compelling, trading at a discount to peers with solid capital ratios and structural re-rating catalysts, including asset management and insurance earnings now contributing more meaningfully.
- The deal’s outcome hinges on golden power clearance and potential EU legal action; UniCredit’s resolve and Brussels’ support add optionality, despite headline and regulatory risk remaining high.
- I see asymmetric outcomes favoring long BAMI positions or selective pair trades; timing risk is real, but downside is cushioned by valuation and sector consolidation dynamics.
Relative Value Opportunity: Bank of India (BOI IN) Vs. Union Bank of India (UNBK IN)
- The Bank of India (BOI IN) vs. Union Bank of India (UNBK IN) price-ratio has deviated more than two standard deviations from its one-year average, signaling a potential pair trade.
- The potential relative value opportunity can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.
- This Insight provides a target return and discusses trade setup and risk management strategies.
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