In today’s briefing:
- HSCI Index Rebalance and Stock Connect: Potential Changes in September
- SET50 Index Rebalance: BLA, JMT, JMART Added; COM7, RATCH, STGT Out
- Alibaba: More Money to Be Made on The Short Side
- Toshiba (6502) Strong Vs Peers on No News Means Susceptible to Risk On Underperformance
- Thai Life Insurance Pre-IPO – Industry Dynamics and Domestic Peer Comparison Aren’t Very Encouraging
HSCI Index Rebalance and Stock Connect: Potential Changes in September
- We see 28 potential inclusions to the HSCI in September, plus another 9 stocks that are close to the inclusion cutoff. Some stocks are already a part of Stock Connect.
- There could be 22 deletions from the index on market cap, liquidity and prolonged suspension. Most of the deletions would be moved to the ‘sell-only’ Southbound Stock Connect list.
- Some of the stocks that remain in the HSCI could move to the ‘sell-only’ Southbound Stock Connect list since their average market cap drops below HKD 5bn.
SET50 Index Rebalance: BLA, JMT, JMART Added; COM7, RATCH, STGT Out
- Bangkok Life Assurance (BLA), JMT Network Services (JMT) and Jaymart (JMART) will replace Com7 (COM7), Ratch Group (RATCH) and Sri Trang Gloves (STGT) in the SET50 INDEX.
- Estimated one-way turnover is 2.1% and will result in a one-way trade of THB 1,914m. There is little funding flow on the other index stocks.
- The inclusion of Bangkok Life Assurance (BLA TB) is a minor surprise. The deletion of Com7 PCL (COM7 TB) is a much bigger surprise.
Alibaba: More Money to Be Made on The Short Side
- After rising more than 40% since Q4 earnings, Alibaba (ADR) (BABA US) is threatening to break out from a downtrend that lasted a little less than 20 months.
- We think this bounce is quite normal given the fact that the stock lost more than 76% of its value during a challenging time period.
- We remain confident that Alibaba has more downside potential and thinks that this is yet another opportunity to make money on the short side.
Toshiba (6502) Strong Vs Peers on No News Means Susceptible to Risk On Underperformance
- Toshiba Corp (6502 JP) sees its AGM next week with new directors and a possible privatisation process ongoing. But the AGM is a done deal and privatisation is not.
- The event-i-ness of Toshiba keeps it “supported” while its better-valued and higher-growth peers fall harder in the face of recent overall market weakness.
- Toshiba promised transparency on its privatisation process, and so far, it has delivered everything it promised. The next “transparency” likely comes in November.
Thai Life Insurance Pre-IPO – Industry Dynamics and Domestic Peer Comparison Aren’t Very Encouraging
- Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
- Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
- In this note, we will talk about the industry dynamics and undertake a peer comparison versus its domestic peers.
Before it’s here, it’s on Smartkarma
