In today’s briefing:
- Nikkei 225 Index Rebalance: Rohm (6963) To Replace NTT Data Group (9613)
- Hygon/Sugon Merger: BIG Index Flows on Completion
- Gold Miners ETF (GDX US): Impact of Benchmark Change – Update
- Greatland Resources (GGP AU): Big Index Inclusions for Recent IPO
- Xero (XRO AU): Index Flows Following the Capital Raise
- FWD Group (1828 HK): Offering Details & Index Entry Timeline
- Krungthai Card (KTC TB): Buying Opportunity After Margin Call
- Quiddity Leaderboard NIFTY Sep25: Multiple Changes to Expected ADDs/DELs; New Pair Trade Ideas
- Quiddity Leaderboard T50/100 Sep25: Shin Kong Replacement + One Dark Horse TDIV Potential DEL
- Ain’s Purchase of Kraft a Sign of More Drugstore M&A to Come
Nikkei 225 Index Rebalance: Rohm (6963) To Replace NTT Data Group (9613)
- Following the results of NTT (9432 JP)‘s tender offer for NTT Data Corp (9613 JP), NTT Data will be deleted from the Nikkei 225 (NKY INDEX).
- ROHM Co Ltd (6963 JP) will be added to the Nikkei 225 (NKY INDEX) at the close on 3 July. The stock is up a fair bit from its lows.
- Nearly all the NTT Data Corp shares not tendered will be held by passives and there will be selling in the stock as index providers move the float lower/delete.
Hygon/Sugon Merger: BIG Index Flows on Completion
- On 26 May, Hygon Information Technology (688041 CH) and Dawning Information Industry (603019 CH) announced a merger in a sign of consolidation in China’s chipmaking industry.
- For each share of Dawning held, shareholders will receive 0.5525 shares of Hygon. With uncertainty on the timeline for merger completion, Dawning is trading at a 10% discount.
- On completion of the merger, passive trackers will need to buy over US$1.1bn of Hygon Information Technology C (688041 CH) with nearly of that from local index trackers.
Gold Miners ETF (GDX US): Impact of Benchmark Change – Update
- The VanEck Gold Miners ETF/USA (GDX US) has announced a benchmark change from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index.
- The benchmark change will result in a bunch of constituent and weight changes in September. Estimated one-way turnover is 16.5% resulting in a one-way trade of US$3.15bn.
- The flow and turnover numbers will change following constituent and capping changes for the MarketVector Global Gold Miners Index at the September rebalance.
Greatland Resources (GGP AU): Big Index Inclusions for Recent IPO
- Greatland Resources (GGP AU) started trading on the ASX Ltd (ASX AU) on 24 June after selling shares worth A$504m in a primary and secondary offering across Australia/UK.
- Greatland has a full market cap of A$4.9bn and a high free float since Greatland Gold Plc (GGP LN) was listed on the AIM market of the London Stock Exchange.
- Given the large market cap and high float, the stock could be added to multiple indices over the next few months.
Xero (XRO AU): Index Flows Following the Capital Raise
- Xero Ltd (XRO AU) has entered into a binding agreement to acquire Melio Limited for an upfront cash consideration of US$2.5bn in cash and Xero Ltd (XRO AU) stock.
- The cash consideration is being funded mainly through a fully underwritten A$1.85bn (US$1.2bn) institutional placement. There is also a non-underwritten Share Purchase Plan to raise around A$200m.
- Given the large size of the institutional placement, there will be an increase in index shares and the passive buying that follows should mop up over 20% of the placement.
FWD Group (1828 HK): Offering Details & Index Entry Timeline
- FWD Group Holdings (FWD HK) is looking to raise up to HK$3.99bn (US$508m) in its IPO, valuing the company at HK$48.82bn (US$6.22bn).
- Cornerstone investors will take up more than half the base offering and that will delay index inclusion to well into 2026.
- FWD Group Holdings (FWD HK) could be added to the HSCI Index and Southbound Stock Connect in December. That could bring some buying into the stock from mainland investors.
Krungthai Card (KTC TB): Buying Opportunity After Margin Call
- Mongkol Prakitchaiwattana is the second largest shareholder in Krungthai Card (KTC TB), behind Krung Thai Bank Pub (KTB TB).
- He also holds stakes in XSpring Capital (XPG TB), BEC World Public (BEC TB), and The Practical Solution (TPS TB).
- All four companies went limit down on the 23rd June. And again the next day. Both KTC and TPS say nothing has fundamentally changed. The cause? Margin calls.
Quiddity Leaderboard NIFTY Sep25: Multiple Changes to Expected ADDs/DELs; New Pair Trade Ideas
- NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
- In this insight, we take a look at the names leading the race to become ADDs/DELs for these indices during the September 2025 index rebal event.
- We see two changes for NIFTY 50 and five changes for NIFTY 100 in the September 2025 rebal.
Quiddity Leaderboard T50/100 Sep25: Shin Kong Replacement + One Dark Horse TDIV Potential DEL
- The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
- In this insight, we take a look at the potential ADDs and DELs for the September 2025 index rebal event.
- Currently, we see no changes for T50 and one change for T100 in September.
Ain’s Purchase of Kraft a Sign of More Drugstore M&A to Come
- The merger of Tsuruha and Welcia got the green light in May and will further galvanise the sector to consolidate, especially in prescriptions due to the shortage of qualified staff.
- Which is why Ain has confirmed the acquisition of Kanto-based prescription drug chains operated by Kraft.
- The move will help maintain Ain’s dominance in the dispensing pharmacy sector and encourage further M&A.
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