In today’s briefing:
- Korea Short Selling Comeback: How Pre-Registering Accounts Will Affect the Trading Scene
- Insignia Financial (IFL AU): CC Capital’s Non-Binding Offer Could Spark a Bidding War
- JPM – Exceptional Core Income Strength, ALM Is Excellent, HFD for US Banks Supports Outlook
- EQD | Hong Kong Single Stock Options Weekly Dec 30 – Jan 03
- Lucror Analytics – Morning Views Asia
Korea Short Selling Comeback: How Pre-Registering Accounts Will Affect the Trading Scene
- KRX and FSS confirmed the NSDS is ready and account registration numbers will be issued, confirming short selling will resume on April 1st, despite no official FSC statement yet.
- Today’s buzz is about pre-registration for short selling, with FSS tracking accounts down to individual desks. This could limit short-selling flexibility, despite addressing the overseas lending issue.
- Exposing too much info on short-selling accounts could shrink securities lending participants, causing supply-demand imbalances, spiking borrowing fees, and creating unique trading opportunities early on.
Insignia Financial (IFL AU): CC Capital’s Non-Binding Offer Could Spark a Bidding War
- Insignia Financial (IFL AU) disclosed a non-binding privatisation offer from CC Capital at A$4.30, a 7.5% premium to the rejected Bain non-binding proposal of A$4.00.
- While the offer is attractive compared to historical trading ranges, it is light compared to peer and precedent transaction multiples.
- The presence of several substantial shareholders necessitates an attractive takeover premium. To facilitate better terms, the board should provide due diligence access.
JPM – Exceptional Core Income Strength, ALM Is Excellent, HFD for US Banks Supports Outlook
- There are few large US banks where quarterly net interest income is more than 1.6x higher now on average than in late FY19 and early FY20
- JPM demonstrates some of the best asset-liability management (ALM) of any major bank in the US
- Other risks and parts of the business appear to be very well managed too, including credit risk and operating costs
EQD | Hong Kong Single Stock Options Weekly Dec 30 – Jan 03
- Big increase in single stock volumes particularly Puts which pushed the single stock put call ratio over 1 for the first time since early November.
- Heavy Put trading in the Financial Sector especially with ICBC and CCB.
- Health Care, Energy and Materials are the 3 sectors seeing higher Put trading vs Calls and are also the 3 sectors with the lowest 3M implied vol 1 year percentile.
Lucror Analytics – Morning Views Asia
- In today’s Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Vedanta Resources
- Last Friday in the US, the ISM manufacturing index climbed to 49.3 in December (48.2 e / 48.4 p).
- This was supported by an increase in the prices paid and new orders components, which offset a decrease in the employment component. Separately, the final manufacturing PMI edged up to 49.4 in the month (48.3 e / 48.3 p).
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