In today’s briefing:
- Ping An A/H: Position for Premium Contraction
- A Detailed Guide About Korea’s FOL Stocks & MSCI Treatments
- Softbank – Director Shuffling At The AGM
- SET50 Index Rebalance: BLA, JMT, JMART Added; COM7, RATCH, STGT Out
- India: AMFI Stock Reclassification Preview
Ping An A/H: Position for Premium Contraction
- The Ping An AH premium has traded around 10% over the last few days – this is near its historical highs and close to where reversals take place from.
- The AH premium of the broader market is below its highs, while the AH premium on large cap financials has been trending lower over the last few months.
- Northbound Stock Connect holdings on the A-shares have been decreasing, while Southbound Stock Connect holdings on the H-shares have been increasing over the last few months.
A Detailed Guide About Korea’s FOL Stocks & MSCI Treatments
- Korea has a total of 33 FOL stocks. The Korean government restricts foreign ownership in major national infrastructure operators such as broadcasting companies, airlines, and telecommunication companies.
- They each have a different FOL % in the range of 0-49.99%, and five are currently included in the MSCI Standard: SKT, LG Uplus, CJ ENM, KEPCO, & KAL.
- Those located on the borderline that will trigger a meaningful event in the MSCI Standard Index are the three telecom companies: SKT, KT, & LG Uplus.
Softbank – Director Shuffling At The AGM
- With Softbank’s AGM coming up we examine some of the curious events that surround the firm as usual.
- Following in the footsteps of former governance director Yuko Kawamoto, VC founder Lip-Bu Tan has also penned a curious resignation message.
- Then there are the continuing questions surrounding Kenneth Siegel and his reappointment is not guaranteed in our view.
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.
India: AMFI Stock Reclassification Preview
- Nearing the end of the review period, we see 5 stocks moving from MidCap to LargeCap, 2 new listings added to LargeCap and 7 stocks moving from LargeCap to MidCap.
- We see 7 stocks moving from SmallCap to MidCap, 3 new listings added to MidCap, and 12 stocks moving from MidCap to SmallCap.
- Stock migrating upward have, on average, outperformed stocks that are downward migrations. Stocks moving from MidCap to LargeCap have performed the best.
Before it’s here, it’s on Smartkarma
