In today’s briefing:
- S&P/ASX Index Rebalance Preview (Sep): Plenty of High Impact Changes
- Giordano (709 HK): Cheng Family’s Underwhelming Offer
- Hutch Tel (215 HK): Something’s Brewing
- Kakao Pay’s MSCI Float Should Be 55% at Aug QIR Based on the Case of Kakao Games
- MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
S&P/ASX Index Rebalance Preview (Sep): Plenty of High Impact Changes
- There could be one change to the S&P/ASX 200 (AS51 INDEX) in July following the privatisation of Uniti Group Ltd (UWL AU).
- Then there will be a whole bunch of changes to the S&P/ASX 100 Index, S&P/ASX 200 (AS51 INDEX) and S&P/ASX 300 Index in September as part of the regular rebalance.
- There is large short interest on a couple of the potential adds and a lot of the potential deletes. That will drive stock price moves closer to implementation.
Giordano (709 HK): Cheng Family’s Underwhelming Offer
- The Cheng family has made a voluntary conditional Offer of $1.88/share for Giordano International (709 HK).
- The Cheng’s (and concert parties) control 24.57%. The Offer is conditional on the family getting to more than 50% via tendering.
- The intention is to maintain Giordano’s listing. The Offer Price has not been declared final.
Hutch Tel (215 HK): Something’s Brewing
- Hutchison Telecommunications (215 HK)‘s share price is up 33% month to date.
- The average volume in June has been 11.9mn shares per day, compared to 3.8mn shares on average over the past year, and 3mn in the past six months.
- Of interest, Southbound buying has accelerated in the last two weeks, with a holding of 0.76% of shares out, up from 0.11% at the beginning of the month.
Kakao Pay’s MSCI Float Should Be 55% at Aug QIR Based on the Case of Kakao Games
- The MSCI immediately included 4.31% owned by Netmarble in Kakao Games’ float by applying one of the exception rules in Sections 3.2.4 or 3.2.5 of the MSCI GIMI Methodology Book.
- The exception rule used here must have been this one: Re-estimating free float figures resulting from the reclassification of shareholders from strategic to non-strategic.
- I can’t find a reason why this practice of the MSCI shouldn’t be equally applied to Alipay’s Kakao Pay stake.
MSCI Annual Market Classification Review: Korea Doesn’t Make It to the Watchlist
- MSCI had announced the results of the 2022 Global Market Accessibility Review earlier this month. Based on that, no changes were expected at the Market Classification Review.
- Earlier this morning, MSCI announced the results of the Market Classification Review and there are no changes for Asia.
- Korea has not been placed on the watchlist for an upgrade from Emerging to Developed Market. The earliest that Korea could be reclassified from EM to DM is now 2025.
Before it’s here, it’s on Smartkarma
