Daily Brief Industrials: Gs Yuasa Corp, U Ming Marine Transport Corp, Hanwha Aerospace and more

In today’s briefing:

Solactive Global Lithium Index Rebalance: 45% Turnover & US$980m Trade
Quiddity Leaderboard T50/100 Dec 23: U-Ming Potential TDIV Deletion Is the Main Talking Point
A Major Defense Cooperation Between Saudi Arabia and South Korea Likely

Solactive Global Lithium Index Rebalance: 45% Turnover & US$980m Trade

Solactive has announced the constituent changes for the Global Lithium Index. There are 8 adds and 9 deletes with implementation at the close on 31 October.
Estimated one-way turnover is in excess of 22% and will result in a one-way trade of US$490m. There are 11 stocks with estimated passive flows greater than 1x ADV.
The index is not very widely tracked and there could be big moves in stocks today and over the next few days – especially where there is multiple days ADV.

In this insight, we take a look at the names leading the race to become ADDs/DELs for the T50 and T100 Indices for the December 2023 Rebalance.
While there are no changes expected for the T50 index there could be one change for the T100 index.
U Ming Marine Transport Corp (2606 TT) has moved closer to a potential T100 deletion which could also result in a TDIV deletion which has very significant flow implications.

In the past several days, there have been numerous local news about a substantial defense cooperation between Saudi Arabia and South Korea.
This could result in billions of dollars in new military/defense related systems new orders for numerous companies in Korea in the coming decade.
If there are major long-term arms deal between Saudi Arabia and South Korea, it could benefit the top defense companies in Korea including Hanwha Aerospace and Korea Aerospace Industries.

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