In today’s briefing:
- MSCI Korea August QIR Preview
- Last Week in Event SPACE: Frasers Hospitality, Toyo Construction, Link Admin, Kito Corporation
- Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality
- Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life
MSCI Korea August QIR Preview
- Small Caps → Standard migrations do not seem to happen at all in this QIR. Similarly, there will likely be no deletion of the existing constituents.
- Among the Outside IMIs, Kakao Pay is the only one that has the possibility of inclusion. However, it also has uncertainty about the float rate in this QIR.
- For FOL stocks, the telcos are on the event-triggering borderline. In particular, SKT deserves attention. But its foreign room is now above 3%, so its deletion possibility is getting slimmer.
Last Week in Event SPACE: Frasers Hospitality, Toyo Construction, Link Admin, Kito Corporation
- Frasers Hospitality (FHT SP)‘s Offer comes at an all-time high price, exceeding the end-2019 price on a dividend-adjusted basis. This should be done, but it is worth thinking about how.
- There is clearly an intentional miscommunication and bad faith posturing by Toyo Construction (1890 JP).
- Link Admin (LNK AU) has to exit PEXA to appease ACCC. But how badly do D&D want PEXA? Will they walk? Time to look at Link fundamentally.
Asia-Pac Weekly Risk Arb Wrap: ResApp Health, Kto Corp, Link Admin, Toyo, Fraser Hospitality
- There are 49 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Two new deals this week: Frasers Hospitality Trust (FHT SP)‘s Scheme, and Pfizer Inc (PFE US)‘s Offer for Resapp Health (RAP AU).
- Key updates took place for: Link Administration (LNK AU), Virtus Health (VRT AU), Toyo Construction (1890 JP), Kito Corporation (6409 JP), and Hwa Hong Corp (HWAH SP).
Index Rebalance & ETF Flow Recap: HSCEI, LQ45, Kakao Pay, Thai Life
- It was a busy Friday with multiple implementations of the June rebalance – FTSE All-World/All-Cap, FTSE China 50/A50/TW50, S&P/ASX, REMX and GDXJ among others.
- We highlight potential upcoming changes to the HSCEI INDEX and LQ45 Index, when Kakao Pay (377300 KS) could be added in MSCI Korea & the Thai Life IPO index inclusion.
- There were large inflows to China and Korea focused ETFs during the week.
Before it’s here, it’s on Smartkarma
