Daily BriefsMost Read

Most Read: SK IE Technology, Shinsei Bank, Orocobre Ltd, JMDC Inc, EVE Energy and more

In today’s briefing:

  • FTSE All-World/All-Cap Index Rebalance: A Lot of Inclusions but There Could Be More
  • Shinsei TOB & Poison Pill – Murakami-San’s Presence Makes Things Complicated, But in a FUN 🦄 Way
  • ASX100/200 Index Rebalance Preview: Permutations and Combinations as M&A Activity Booms
  • A Really BIG Event for JMDC (4483)
  • FTSE China A50 Index Rebalance Preview: Two Sets of Changes

FTSE All-World/All-Cap Index Rebalance: A Lot of Inclusions but There Could Be More

By Brian Freitas

  • For Asia, there are a lot of inclusions to the FTSE All-World and All-Cap indices that will be implemented after the close of trading on 17 December.
  • Most of the inclusions are expected, but there are a couple of names that have not been included and a few names that were not expected inclusions but were added.
  • FTSE will increase the shares in issue and investability weight for WH Soul Patterson following its merger with Milton. Passive FTSE trackers will need to buy 11 days of ADV.

Shinsei TOB & Poison Pill – Murakami-San’s Presence Makes Things Complicated, But in a FUN 🦄 Way

By Travis Lundy

  • This week will see the Shinsei shareholder vote regarding the Poison Pill which will determine whether SBI’s Tender Offer to get to 48% will go forward.
  • Murakami-San and entities own 7.43% of shares out (and 9.16% of voting rights) as of 12 November. 
  • His now-large presence in the shareholder register makes a post-vote outcome much more interesting. 

ASX100/200 Index Rebalance Preview: Permutations and Combinations as M&A Activity Booms

By Brian Freitas

  • The review period for the December review ended on 19 November. The announcement of changes will take place on 3 December with implementation at the close on 17 December.
  • There could be two changes to the ASX100 and S&P/ASX 200 (AS51 INDEX) prior to the regular rebalance if Spark Infrastructure and Oil Search are delisted.
  • Then there could be another change to the S&P/ASX100 and up to five changes to the S&P/ASX 200 (AS51 INDEX) at the regular review. Some impacts are large.

A Really BIG Event for JMDC (4483)

By Travis Lundy

  • JMDC Inc (4483 JP) is an interesting company with a high-flying stock price and valuation. 
  • As one of the larger companies in the TSE Mothers universe, it still had not announced its intentions regarding TSE, and today we have the reason why
  • JMDC will move from Mothers to TSE1 on 29 November, and this will be a biggie. 

FTSE China A50 Index Rebalance Preview: Two Sets of Changes

By Brian Freitas

  • At the end of the review period, we expect Zhangzhou Pientzehuang Pharmaceutical and EVE Energy to be added to the index, replacing Sany Heavy Industry and Anhui Conch Cement.
  • We estimate one-way turnover at 3.14% and that will result in a one-way trade of CNY 1,591m. Impact on the stocks appears subdued given the extremely high liquidity.
  • The inclusions have outperformed the deletion by a large margin and there are opportunities to exit overvalued/ enter undervalued stocks using the passive flow to minimize impact.

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