Daily Brief Financials: SAMSUNG KODEX KOREA Value-Up ETF, SGX Rubber Future TSR20, Hang Seng Index, Macrotech Developers, EURO/US DOLLAR, Nikkei 225, Korea Stock Exchange KOSPI 200, American International Group, Bank Negara Indonesia Persero and more

• The KRX is going all-in, using data transparency to clean up the Value-Up Index, rebuild trust, and keep it in the spotlight.
• This sharpens predictability for June’s rebalancing, enhances market transparency, and attracts foreign investors to GICS-based indices like the KOSPI 200.
• This could transform index dynamics, boosting inflows, liquidity, and global interest, creating a potential alpha opportunity.

• Greenfield tire production facility to come up in Sindh, Pakistan
• JK Tyre to get US$100 million sustainability loan for expansion
• Sustainability-linked loan a first in India’s tire industry

• All three markets exhibited larger average returns in the 5 days leading up to Lunar New Years compared to out-of-sample data.
• The pattern for the period after Lunar New Year does not show the same characteristics as prior to Lunar New Year.
• The strongest returns were seen in FXI with average returns 10X out-of-sample average returns.

• The Lodha brothers, Abhishek and Abhinandan, are locked in a legal battle over the use of the “Lodha” brand, despite a 2017 family settlement agreement.
• Macrotech Developer is seeking a perpetual injunction against HoABL to cease the use of the “Lodha” brand in any form and is demanding INR5,000 crore in damages. 
• The Bombay High Court on January 21 said that it would hear on January 27 the application filed by Abhishek Lodha-promoted Macrotech Developers Ltd 

• Basis reflects the US dollar scarcity premium, with a more negative basis indicating greater scarcity
• Positive Euro US dollar basis is primarily driven by short-term tactical cross-border flows, not direct funding dynamics
• Evolution of relative balance sheet dynamics between the Fed and ECB will be a dominant driver of the Euro US dollar basis going forward

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Nikkei back at the top of the price range rising 3.85%. Gains may be more limited from here without an assist from the currency.
• Implied vols softened on the week from a combination of factors includes low realized volatility on the week.
• Active trade in Put and Call strikes at the edge of the recent trading range.

• The lead up to Lunar New Year typically sees stronger than normal returns and last week was no exception with the strong rally continuing for both markets.
• Price action was more volatile than has been seen lately pushing up short term historic volatility measures with 1M implieds +- 1point.
• June 6000 Puts in HSCEI seeing continued trading interest at the June 27 expiry.

• Kospi200 has stalled out gaining only 50bps on the week after taking the gain on the month to 5.9%.
• Implied vols have flat-lined with spot grinding out gains and historic vols bracketing implied.
• We highlight the positive seasonality heading into Lunar New Year.

• American Airlines has showcased strong performance metrics in recent quarters but is currently grappling with investor concerns over its first-quarter guidance.
• For Q4 2024, the airline delivered record-breaking revenue of $13.7 billion, contributing to an annual revenue milestone of $54.2 billion.
• Earnings per share (EPS) for the quarter stood at $0.84, exceeding expectations of $0.66.

• Bank Negara Indonesia came good in 4Q2024 with a strong finish to the year due to higher loan growth from corporates and consumers, alongside higher CASA growth cementing higher NIMs
• The bank also saw improving asset quality, with falling loans-at-risk, and although there was an uptick in provisions in 4Q due to Sritex, the outlook for credit costs looks stable.
• Bank Negara Indonesia will grow its focus on becoming a transactional bank, with CASA as a key focus, providing liquidity to grow its loan book. Valuations remain attractive.