In today’s briefing:
- CSI300 Index Rebalance Preview: 30 Potential Changes as Sector Rotation Continues
- STAR50 Index Rebalance Preview: 3 Changes or 5? It Depends…
- Overlooked Aspect About MSCI’s SKT Foreign Room Calculation
- PAG Pre-IPO – The Positives – Past Record Has Been Decent
- SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
CSI300 Index Rebalance Preview: 30 Potential Changes as Sector Rotation Continues
- We expect the maximum permitted 30 changes at a single review to take place at the June rebalance. Most changes are high probability.
- We estimate a one-way turnover of 4.25% at the rebalance leading to a one-way trade of CNY 10.677bn.
- Industrials, Information Technology and Materials sectors are expected to have the most net inclusions, while Health Care and Financials are expected to have the most net deletions.
STAR50 Index Rebalance Preview: 3 Changes or 5? It Depends…
- There could be 3 or 5 changes to the STAR50 INDEX in June depending on the minimum listing history (6 months or 12 months) used by the index committee.
- Jinko Solar (688223 CH) is a high probability inclusion while Shanghai Microport Endovascular MedTech (688016 CH), ArcSoft Corp Ltd (688088 CH) and DBAPP Security Ltd (688023) are high probability deletions.
- Stocks performance over the last couple of months indicates the market is assigning a higher probability to the index committee using a 12 month minimum listing history.
Overlooked Aspect About MSCI’s SKT Foreign Room Calculation
- The MSCI does not have a rule on how to treat DRs in the foreign room calculation. It only considers the proportion of shares AVAILABLE to foreign investors.
- Unlike KT in 2019, SKT ADRs are not traded at a premium. It means that the MSCI may treat a portion of SKT ADRs as Still AVAILABLE Shares.
- For this reason, it cannot be concluded that SKT will be deleted simply because it is below 3.75%.
PAG Pre-IPO – The Positives – Past Record Has Been Decent
- PAG aims to raise around US$2bn via its Hong Kong IPO.
- PAG is an alternative investment firm focused on Asia-Pacific (APAC), it had approximately US$50bn in assets under management (AUM), as of Dec 21.
- In this note, we will talk about the positive aspects of the deal.
SET50 Index Rebalance Preview: +JMT, JMART, BJC / -RATCH, STGT, IRPC
- The market cap and liquidity review period for the June rebalance of the Stock Exchange of Thailand SET 50 Index (SET50 INDEX) ends in less than four weeks.
- Potential inclusions are JMT Network Services (JMT), Jaymart PCL (JMART) and Berli Jucker (BJC) while the potential deletions are Ratch Group (RATCH), Sri Trang Gloves (STGT) and IRPC PCL (IRPC).
- There are a couple of stocks that are close on liquidity and trading volumes over the next few weeks will determine if they are added, they stay or go.
Before it’s here, it’s on Smartkarma
