Daily Brief Industrials: Keppel Corp, Beijing-Shanghai High Speed Railway-A, HMM Co., Ltd. and more

In today’s briefing:

Sembcorp Marine Takeover of Keppel O&M – Almost There
SSE180/SSE380 Index Rebalance: Changes & Potential MSCI/FTSE Inclusions & Exclusions
KOSPI 200 Sector/Size & KRX 300 Sector: Constituent Changes & Trading Points

Sembcorp Marine Takeover of Keppel O&M – Almost There

Last Wednesday, Keppel Corp (KEP SP) announced 8 Dec as the EGM date for shareholders to approve the AssetCo Transfer, the Keppel O&M/SMM combo, and the distribution of SMM shares.
This should probably sail through. Investors who want to submit questions in advance can email [email protected] by 3pm 30 Nov.
I still like Keppel. I think investors will find it attractive post-spin.

There are 18 changes to the SSE180 Index and 38 changes to the SSE380 Index that will be implemented at the close of trading on 9 December.
There will be 10 deletions from the MSCI Standard Index and 26 deletions from the FTSE All-World/All-Cap indices at the close on 9 December.
Currently, 8 stocks meet the threshold/are close for inclusion in the MSCI China Index while there are 21 stocks that meet the threshold for inclusion in the FTSE All-World/All-Cap indices.

The additional Lotte Confectionery/Samyang Holdings flow will come from K200/KRX 300 Consumer Staples, K200 MidSmallCap, and K200 Ex-Top. However, the actual flow impact wouldn’t be significant.
From a flow trading standpoint, the KOSPI 50’s HMM/Hanon System probably deserves our attention because additional inflows come from the pensions that account for more than half of local PASSIVE.
Since their rebalancing trading tends to be somewhat dispersed, the return rate was the best when the position holding period was from T-3 to the effective date.

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