Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

Kioxia (285A JP) Placement: Limited Passive Buying & Big Runup Opens Up More Downside

Kokusai Electric (6525 JP): Small Index Impact for Now, but Could Lead to Something Bigger

Ibiden (4062 JP): Secondary Offering Comes Hot on the Heels of Index Inclusion

Ibiden (4062 JP): Expensive but Global Index Inclusion Coming Up

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>Four shareholders are looking to sell upto 37.6m shares (JPY 338bn; US$2.17bn) of <a href="https://www.smartkarma.com/entities/nintendo-co-ltd" target="_blank" data-smartkarma-citation="entities:5415:1" rel="noopener">Nintendo (7974 JP)</a> in a secondary offering at a 3-5% discount to the close on pricing date.</li>
<li>To reduce the impact of the offering and improve capital efficiency, <a href="https://www.smartkarma.com/entities/nintendo-co-ltd" target="_blank" data-smartkarma-citation="entities:5415:1" rel="noopener">Nintendo (7974 JP)</a> will buy back up to 14m shares via ToSTNeT-3 paying a maximum of JPY 100bn.</li>
<li>The increase in the free float will be offset by a decrease in the number of outstanding shares, and the passive flows will be relatively small.</li>
</ul>


Four shareholders are looking to sell upto 37.6m shares (JPY 338bn; US$2.17bn) of Nintendo (7974 JP) in a secondary offering at a 3-5% discount to the close on pricing date.
To reduce the impact of the offering and improve capital efficiency, Nintendo (7974 JP) will buy back up to 14m shares via ToSTNeT-3 paying a maximum of JPY 100bn.
The increase in the free float will be offset by a decrease in the number of outstanding shares, and the passive flows will be relatively small.


Mitsubishi UFJ Financial (MUFG) (8306 JP)

Nintendo (7974 JP) Secondary Offering: Buyback Absorbs Some Selling; Passive Impact Limited