In today’s briefing:
- BHP Woodside Distribution – Could Be a Large Block (~US$1bn) In Early June
- FTSE China A50 Index Rebalance Preview: Three Potential Adds/Deletes Due to Ground Rule Change
- FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- Liquid Universe of European Ordinary and Preferred Shares: May ’22 Report
- MCT and MNACT Unitholders Approve Merger To Become MPACT
- S&P BSE Indices: No Changes for SENSEX; 7 ADDs/DELs for BSE 100 in June 2022
- Launch of Two New REIT Indices by KRX and Two New REIT ETFs in Korea
BHP Woodside Distribution – Could Be a Large Block (~US$1bn) In Early June
- BHP shareholders will receive US$18bn worth of Woodside petroleum shares on 1st Jun 2022, post the completion of the merger. Block, worth US$1.5bn, could be sold in early June.
- As a part of the distribution, some shares belonging to ineligible and other small shareholders will have to be sold by the sales agent, JPM.
- In this note, we will look at the possible deal dynamics and the overall background of the deal.
FTSE China A50 Index Rebalance Preview: Three Potential Adds/Deletes Due to Ground Rule Change
- We expect PetroChina (601857 CH) and Gree Electric Appliances (000651) to be deleted following a Ground Rule change. Chongqing Zhifei Biological Products (300122 CH) should be deleted on market cap.
- Potential inclusions are Tongwei Co Ltd A (600438 CH), China Citic Bank Corp (601998 CH) and Anhui Conch Cement (600585 CH).
- One-Way turnover at the FTSE China A50 Index (XIN9I INDEX) June rebalance is estimated at 2.91% and will result in a one-way trade of CNY 1,420m.
FTSE China 50 Index Rebalance Preview: Adds, Deletes & Capping Changes
- We expect China Railway Group Ltd H (390 HK) and Yanzhou Coal Mining (1171 HK) to replace Smoore International (6969 HK) and Sunny Optical (2382 HK) in the FTSE China50 Index.
- There are capping changes that have a reasonable large impact on a couple of stocks. One-way turnover is estimated at 3.97% and will result in a one-way trade of HK$1,912m.
- FTSE has increased the investability weight for Li Auto (2015 HK) / Li Auto Inc. (LI US) and this leads to the stock failing the median liquidity test.
Liquid Universe of European Ordinary and Preferred Shares: May ’22 Report
- Spreads have generally tightened across our liquid universe, in line with the recent market gains.
- Recommendations long ords / short prefs: Fuchs Petrolub, Investor AB, SSAB.
- Recommendations long prefs / short ords: Sixt, VW, Danieli, MFE, Grifols, Atlas Copco, Ericsson Handelsbanken, Roche, Schroders.
MCT and MNACT Unitholders Approve Merger To Become MPACT
- The merger between Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) (a.k.a. “MNACT”) was approved by both sets of unitholders today.
- MCT unitholders offered 85.7-92.1% approval rates for the four measures. MNACT unitholders offered 98-99% approval rates (but high 80s in terms of unitholder count).
- Now we move forward, with the election of terms and
S&P BSE Indices: No Changes for SENSEX; 7 ADDs/DELs for BSE 100 in June 2022
- After market close on Friday 20th May 2022, the constituency changes for S&P BSE 100, SENSEX 50, and SENSEX Next 50 Indices were announced.
- There will be no changes for S&P BSE SENSEX and S&P BSE BANKEX Indices in the June 2022 Rebalance.
- These changes will become effective at the open of Monday 20th June 2022. Below is a closer look at each of the names involved in the June 2022 Rebalance.
Launch of Two New REIT Indices by KRX and Two New REIT ETFs in Korea
- On 23 March, Korea Exchange launched two Korean REITs related indices, including KRX REITs TOP 10 Index and KRX REITs TOP 10 Leverage Index.
- Korea Exchange will list two more REITs related ETFs in KOSPI on 24 May including Arirang Fn KREIT ETF (429740 KS) and HEROES REITs IGIS Active ETF (429870 KS).
- The launch of the two new REIT indices by the Korea Exchange and two new REIT ETFs are likely to accelerate higher demand for high quality REITs in Korea.
Before it’s here, it’s on Smartkarma
