In today’s briefing:
- FTSE All-World/All-Cap Index Rebalance: Inclusions, Deletions & Other Changes
- HSI Index Rebalance: Four Weddings & A Funeral
- SPH Offer Open – Starts to Look Interesting
- Index Rebalance & ETF Flow Recap: MSCI, ASX, NIFTY, KRX, PCOMP, HSI, HSCEI, HSTECH, SK Tel, GoTo
- GoTo: A Private Placement Larger Than the IPO and a 10% Potential Dilution
FTSE All-World/All-Cap Index Rebalance: Inclusions, Deletions & Other Changes
- For Asia Pacific, there are 8 inclusions each to the All-World Index and the All-Cap Index at the June QIR. Quite a few have over 3 days ADV to buy.
- There are also changes to the NOS and investability weights that will require passive funds to buy/sell a lot of stocks. Some have a reasonably large impact/flow.
- A lot of the IPOs are trading below their offering prices and investors could be looking to sell into any rallies that take the stocks close to their IPO prices.
HSI Index Rebalance: Four Weddings & A Funeral
- The inclusion of Orient Overseas International, Zhongsheng Group, Semiconductor Manufacturing International Corp (SMIC) and China Hongqiao plus the deletion of AAC Technologies Holdings takes us to 69 index stocks.
- Changes to the stocks, number of shares, float and capping result in an estimated one-way turnover is 3.43% and will result in a one-way trade of HK$7,444m.
- There is huge short interest on Zhongsheng Group (881 HK) and China Hongqiao (1378 HK) and there could be some short covering from now to implementation.
SPH Offer Open – Starts to Look Interesting
- The SPH REIT (SPHREIT SP) Chain Offer was launched on Thursday 19 May.
- The Chain Offer Price has been revised lower from the original level to be S$0.9372/unit, as discussed a few times in these pages.
- The units have underperformed Peer Baskets for the last few months and have now fallen to the Chain Offer Price. That presents opportunities
Index Rebalance & ETF Flow Recap: MSCI, ASX, NIFTY, KRX, PCOMP, HSI, HSCEI, HSTECH, SK Tel, GoTo
- Plenty of review announcements after the close on Friday – HSI, HSCEI, HSTECH, FTSE AW/AC, Sensex. Most changes were as expected.
- There are a lot of review cutoffs on Monday and announcements expected later in the week (KOSPI200, KOSDAQ150, CSI300, STAR50).
- There were inflows to Hong Kong, Taiwan, Korea and Australia focused ETFs during the week, while there were outflows from China, Japan and India focused ETFs.
GoTo: A Private Placement Larger Than the IPO and a 10% Potential Dilution
- Superapp GoTo (GOTO IJ) on Friday announced that it plans to issue 118.4bn shares through a private placement subject to shareholder approval.
- This fresh issue accounts for 9.9% of the total outstanding shares of the company and the announcement comes 2-months after the company’s US$1.1bn IPO in March this year.
- GoTo’s shares are down 20.4% since its IPO and the shares are trading IDR304 a piece, well below its IPO price of IDR338 per share.
Before it’s here, it’s on Smartkarma
