In today’s briefing:
- FTSE TWSE Taiwan 50 Index Rebalance Preview: Inclusion Fairly Certain; Close Among the Deletions
- MSCI Korea IR: Rise of Meritz Fire, Wemade Gone, Kakao Pay Still Tricky, & SK Square Certainty
- CCASS: Why Large Moves Still Mattered in 2021
- STOXX Europe Indices: Quiddity Leaderboard for March 2022 Rebalance (And Jan 2022 BHP Replacement)
- The Citic Securities Rights Offering – Dilution Against Timing
FTSE TWSE Taiwan 50 Index Rebalance Preview: Inclusion Fairly Certain; Close Among the Deletions
- The next FTSE TWSE Taiwan 50 Index review will use data from 21 February. The changes will be announced on 4 March and implemented at the close on 18 March.
- China Development Financial (2883 TT) is a potential inclusion following a rally in the stock price and increase in shares outstanding following the acquisition of China Life Insurance (2823 TT).
- Any one of three stocks could be deleted to keep the number of index constituents at 50. There is 3% difference in market cap, so its very close.
MSCI Korea IR: Rise of Meritz Fire, Wemade Gone, Kakao Pay Still Tricky, & SK Square Certainty
- Additions: Meritz Financial Group and Meritz Fire (with a YTD price gain of over 40%) are very likely, and Kakao Pay is still the trickiest one.
- Deletions: Shinpoong Pharm is the most likely one, but the others remain a slim possibility.
- Float rate changes: SK Square is a certainty with the most significant impact, and SKIET and HMM deserve our attention.
CCASS: Why Large Moves Still Mattered in 2021
- In this latest installment in a series dating back to March 2018, I’ve analysed 4,400 moves over three years inside CCASS, targeting >5% of shares outstanding of individual stocks.
- The data continues to bear out the overall underperformance of stocks that exhibit large CCASS moves.
- But it also serves to illustrate that when a certain % move takes place in tandem with a certain market capitalisation, there is a tendency for outperformance.
STOXX Europe Indices: Quiddity Leaderboard for March 2022 Rebalance (And Jan 2022 BHP Replacement)
- The STOXX Europe 600 Index is a benchmark index with a fixed number of 600 components representing large, mid and small capitalization companies across 17 countries of the European region.
- The EURO STOXX Index is a subset of the STOXX Europe 600 Index and is also the parent index for the widely-tracked EURO STOXX 50 Index.
- Below is a look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in March 2022.
The Citic Securities Rights Offering – Dilution Against Timing
- Citic Securities has launched a Rights Offering for H Shares and A Shares. The price is basically the same, which means a very big discount for A holders.
- The timing is different, and the H share Rights Issue process is drawn out past Chinese New Year. This may affect takeup rates and bullishness.
- The difference in capital approach between Dual H/A-share listed SOEs like Citic Securities and like China Mobile is stark. The dichotomy may expand.
Before it’s here, it’s on Smartkarma
