|Bid||231.70 x 30000|
|Ask||232.40 x 30000|
|Day's range||230.50 - 230.50|
|52-week range||123.01 - 233.20|
|Beta (3Y monthly)||1.13|
|PE ratio (TTM)||33.04|
|Forward dividend & yield||2.46 (1.07%)|
|1y target est||N/A|
(Bloomberg) -- MSCI Inc. scrapped plans to add a high-flying Hong Kong stock to its indexes because of concerns about investability, a rare reversal that sent the stock plunging 98%.ArtGo Holdings Ltd., which had soared almost 3,800% this year for the world’s biggest gain among companies with a market capitalization of at least $1 billion, erased nearly all of that advance within minutes on Thursday as investors reacted to MSCI’s decision. The stock wiped out more than $5.7 billion of value before trading was suspended.MSCI, which had announced its intention to include ArtGo just two weeks ago, said in statement on Wednesday that it would no longer do so after “further analysis and feedback from market participants on investability.” An ArtGo representative said the company, a marble producer that has been expanding into other businesses like real estate, couldn’t immediately comment.ArtGo’s rally had flummoxed local market veterans, with prominent activist investor David Webb warning in September that the stock was a “bubble.” Its surge was the latest in series of extreme, unexplained swings in Hong Kong that have cast the city’s financial markets in an unflattering light and led some observers to argue that MSCI and its peers should prevent such stocks from entering indexes that guide investments worth trillions of dollars.“It’s good that MSCI is listening to what market participants are saying,” Daniel So, a strategist at CMB International Securities Ltd., said by phone. “It’s positive for the health of the market. It’s hard to avoid adding some stocks with bubbles into the benchmark if we just focus on data like market cap. So it’s good that MSCI is doing case-by-case studies.”MSCI was criticized earlier this year for including Hong Kong-listed China Ding Yi Feng Holdings Ltd. in its indexes after the company rallied 8,500% over five years despite repeatedly reporting operating losses. The stock was later suspended by Hong Kong’s securities regulator, which said it was investigating suspicious trading in DYF after its price had climbed to an “irrationally high” level.At the time, MSCI said it used quantitative criteria such as market value, free float, and liquidity when choosing companies for its indexes and didn’t make judgments about profitability, growth prospects or “any other subjective” metrics.Index decisions by MSCI and its rivals have grown increasingly important for stock markets in recent years, thanks to the growing popularity of passive investment strategies. Multibillion-dollar funds run by BlackRock Inc., Vanguard Group Inc. and Northern Trust Corp. were all buyers of DYF’s stock after it won entry into MSCI’s indexes.Read more: Mysterious 8,500% Rally Attracts Big Funds and Big QuestionsMSCI didn’t immediately respond to a request for comment on ArtGo. FTSE Russell, which includes the stock in one of its China indexes, declined to comment, as did spokesmen for the Hong Kong stock exchange and the city’s Securities and Futures Commission. Bloomberg LP, the parent company of Bloomberg News, competes with MSCI and others by compiling indexes and providing analytics for stocks, bonds and commodities.ArtGo, which listed in Hong Kong in 2013, reported a net loss of about 29 million yuan ($4.1 million) in the first six months of 2019, after losing 396 million yuan in 2018. The company began investing in the Chinese real estate market this year, buying properties valued at 206 million yuan. ArtGo funded the deals through a combination of cash and newly issued shares that were sold at discounts of more than 20% to the prevailing market price at the time.Read more: Short Seller Aandahl Sends Hong Kong Stock Down 91% With AttackThe stock began surging around the middle of this year and was added to the FTSE Global Equity Index Series China Index in late September, prompting passive funds managed by the likes of Vanguard and State Street Corp. to buy. On the first trading day after ArtGo was included in the index, it plunged nearly 50%. State Street and Vanguard declined to comment.By early October, ArtGo had begun rallying again. The gain accelerated after MSCI said on Nov. 7 that it would add the company to its indexes, sending the stock up more than 100% between the announcement and Wednesday’s close. Its plunge on Thursday was the biggest in Hong Kong, where the benchmark Hang Seng Index slid 1.6%.(Adds link to short seller story and updates trading from third-to-last paragraph)\--With assistance from Benjamin Robertson.To contact the reporters on this story: Jeanny Yu in Hong Kong at email@example.com;Kiuyan Wong in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Sofia Horta e Costa at email@example.com, ;Jun Luo at firstname.lastname@example.org, Michael PattersonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
MSCI, the world's biggest index provider, will follow in the footsteps of S&P Dow Jones and FTSE Russell, which told clients this week that they could fast-track Saudi Aramco's inclusion into their indexes as soon as December. State-owned Saudi Aramco, the world's most profitable company, is set to launch a share sale process on Nov. 17, aiming to raise $20 billion-$40 billion in a domestic initial public offering (IPO) in early December. The oil giant is due to announce the pricing of its IPO on Nov. 17, but it is unclear whether more details around timing will be disclosed.
We wouldn't blame MSCI Inc. (NYSE:MSCI) shareholders if they were a little worried about the fact that Benjamin...
(Bloomberg) -- Stocks in Kuwait and Saudi Arabia rose the most in the Gulf as investors reacted positively to a review by index compiler MSCI Inc. late last week.Kuwait’s index advanced as much as 1.8% after MSCI said it will increase the weight of National Bank of Kuwait SAK, the country’s biggest lender, within its benchmarks. That’s “a big positive surprise,” analysts at EFG-Hermes said. NBK’s shares gained as much as 4.3%, the most in two years.In Riyadh, Arab National Bank climbed as much as 5.4% after MSCI said it will add the stock to its emerging-markets index. It finished at the highest level in over a month.Investors were also perusing the prospectus of Saudi Aramco’s initial public offering, which will take place in Riyadh. Saudi Arabia will allow investors to start bidding for shares in the world’s most-profitable company from Nov. 17. While the document didn’t disclose the number of shares to be sold, it will allocate up to 0.5% of the stock to individual investors.NBK ends 2.8% higher at KW0.962, boosting the Premier Market index 1.1%Finishes at the highest level since Sept. 25Arab National Bank climbs 2.1% to finish at SAR23.30National Agriculture Development Co. gains 2.7%, the most in two weeks, after proposing a 20% capital increase through the distribution of one bonus share for every five heldThe Tadawul All Share Index advanced 1%Emirates NBD falls 2.2% in Dubai, dragging down the DFM General Index, which drops 1.4%NOTE: The subscription for the lender’s $1.76b rights issue starts Sunday and will close on Nov. 20Also in Dubai, Emaar Development slumps 7.2% after being excluded from MSCI’s main indexesExchanges in Bahrain, Oman and Egypt are closed for holidaysTo contact the reporter on this story: Filipe Pacheco in Dubai at email@example.comTo contact the editors responsible for this story: Celeste Perri at firstname.lastname@example.org, James AmottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- India’s debt-burdened companies could get kicked out of MSCI Inc.’s benchmark index later this week.Highly indebted companies including Vodafone Idea Ltd., Indiabulls Housing Finance Ltd. and Glenmark Pharmaceuticals Ltd. are likely to be removed from the MSCI India Index, according to brokers.Most of these companies have seen a sharp erosion in their market values in the wake of the yearlong crisis in India’s credit market. The troubled private lender Yes Bank Ltd. has slumped more than 60% this year, while Indiabulls was axed from the NSE Nifty 50 Index in September after the mortgage lender’s share value more than halved.ICICI Prudential Life Insurance Co. and Siemens Ltd. are companies likely to be added to MSCI’s indexes, according to Morgan Stanley and Edelweiss. The insurer is up more than 50% this year. Siemens slid 0.4% at 10:11 a.m. in Mumbai after reaching a record on Monday.MSCI will announce the results of its semi-annual review of gauges on Nov. 7 during U.S. hours. The changes will be effective at the close of Nov. 26, the index provider said last month. A company spokeswoman didn’t have any immediate comments to offer.(Updates with Tuesday’s trading in fourth paragraph)To contact the reporter on this story: Abhishek Vishnoi in Singapore at email@example.comTo contact the editors responsible for this story: Lianting Tu at firstname.lastname@example.org, Ravil Shirodkar, Margo TowieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Pocket Cast or iTunes.JPMorgan Chase & Co. said its business in Saudi Arabia is growing faster than any other region in the world, helped by the stock exchange’s inclusion in MSCI Inc.’s main emerging markets index.“We at JPMorgan believe that Saudi will become the main hub in the region, as well as one of the main hubs globally,” Carlos Hernandez, head of global banking at the New York-based firm, said on the opening day of the Future Investment Initiative summit in Riyadh.Global investment firms are clamoring to do business with the kingdom, where low oil prices have forced officials to tap international debt markets and seek foreign capital. Advisers hired for the imminent IPO of Saudi Aramco are set to split a fee pool of as much as $450 million, Bloomberg News has reported. JPMorgan is one of nine joint global coordinators on the deal.The bank “made the decision to go onshore in Saudi about eight years ago, open our custody, and our business is growing at the fastest pace than any other region in the world,” Hernandez said.Key Developments:Boutique firm Evercore says Brexit and trade war are hurting cross-border mergers and acquisitionsHSBC’s interim CEO Noel Quinn says the current economic policy in Europe doesn’t work for banksFor more from the summit, where President Donald Trump’s adviser Jared Kushner also speaks later on Tuesday, click back throughout the day. Time stamps are local.Citigroup’s Corbat on Inclusive Workplace (13:10 p.m.)Citigroup Inc. is pushing to close the “big big gap” of women in senior leadership positions and is committed to achieving the goal, CEO Mike Corbat said at the event.“We review those metrics on a regular basis at my leadership table,” he said. “We are actually about 51% female. In terms of fair pay, we did the work around the globe, we found some discrepancies, and we fixed those.”Evercore Says Brexit, Trade War Hurting M&A (11:18 a.m.)Brexit and the trade war between the U.S. and China are hurting large M&A deals, according to boutique bank Evercore Inc.“The trade configuration and inability to sort out Brexit have a dampener on larger transactions because you have to wait a year and half, two years, to get a transaction done,” said Chief Executive Officer Ralph Schlosstein. Cross borders deals, which need the approval of 20 to 25 regulators, are particularly being hit hard.Takeover volumes since the start of September have fallen to the lowest level in eight years, according to data compiled by Bloomberg. Slow growth and political turmoil in Europe have kept U.S. acquirers away from the continent -- a traditional driver of M&A in the region.“Historically, companies competed based on the quality of their products or services,” Schlosstein said. “Today we run the risk of going into a decoupled world where companies are going to compete on the basis of where they happen to be domiciled and with whom they happen to be allied. That will be an economic and growth destroyer.”Mubadala Sells Assets Ahead of Market Correction (10:29 a.m.)Abu Dhabi’s Mubadala Investment Co. is selling assets that have reached maturity as the sovereign fund prepares for a market correction, Chief Executive Officer Khaldoon Al Mubarak said.“Mubadala is preparing for a correction that’s bound to come. I don’t know when that correction is gonna come.”Abu Dhabi, the holder of about 6% of the world’s oil reserves, has been selling stakes in some assets in an effort to diversify its economy by turning oil revenue into profitable investments.Mubadala in April agreed to sell a stake valued at as much as $4.8 billion in Spanish oil refiner Cepsa to Carlyle Group LP. It’s also said to be exploring options for Nova Chemicals Corp., a Canadian plastics maker that could be valued at more than $10 billion.HSBC Says Economics of Europe Don’t Work for Banks (09:55 a.m.)Europe needs to revert to “normalized monetary economics” as the current policies don’t work for banks, according to Noel Quinn, acting Chief Executive Officer of HSBC Holdings Plc.“It’s very hard to run a financial institution in an environment of negative interest rate,” Quinn said.Job cuts announced by banks this year were approaching 60,000 last month, almost all of them in Europe, where negative interest rates and a slowing economy prompt lenders, including Germany’s Commerzbank AG, to step up cost reductions.HSBC on Monday embarked on its biggest overhaul in years after profit missed estimates.Schwarzman on Being a Central Banker (9:51 a.m.)Blackstone Group Inc. Chief Executive Officer Stephen Schwarzman joined the outcry against low and negative interest rates, saying that central bankers have run out of firepower to propel economic growth.“Interest rates around the world are so low, I don’t know what I would do as a central banker,” Schwarzman, who spoke on the same panel with Dalio, said. “You certainly run out of effectiveness. I don’t even know how to run a financial institution. We will have a downturn, it will be challenging, and we will need a lot of fiscal stimulus.”On Monday, outgoing European Central Bank President Mario Draghi used his farewell address to make one last plea for euro-zone fiscal support, saying low interest rates can no longer provide the same degree of stimulus as in the past.Dalio Sees a ‘Scary Situation’ for the Global EconomyBillionaire hedge-fund founder Ray Dalio said the global economy is under threat from an explosive mix of ineffective monetary policy, a rise in the wealth gap and climate change.The combination will lead to a “scary situation” over the next decade, according to Dalio, whose investment management firm, Bridgewater Associates, is the world’s biggest hedge fund.“The technology and increasing use of artificial intelligence and increased productivity will also substantially increase the wealth gap, the job gap, the wealth and ideological conflicts within countries,” he said.\--With assistance from Arif Sharif, Farah Elbahrawy, Fahad Alzahrani and Archana Narayanan.To contact the reporters on this story: Matthew Martin in Riyadh at email@example.com;Nicolas Parasie in Riyadh at firstname.lastname@example.org;Dinesh Nair in London at email@example.comTo contact the editors responsible for this story: Alaa Shahine at firstname.lastname@example.org, ;Stefania Bianchi at email@example.com, Claudia MaedlerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. To keep it practical...
Restricting the flow of U.S. capital to China would have a "devastating" impact on global markets, the head of index provider MSCI Inc told CNBC on Friday. "If that happens, then we're going to have a world in which the fuel that lubricates economic growth and prosperity in the world is cut off, the oxygen gets cut off, and therefore you end up with a global economy that is significantly smaller than we have today," said MSCI Chief Executive Officer Henry Fernandez.
Some of the biggest public pensions funds in the United States have invested in one of the world's largest purveyors of video surveillance systems that the U.S. government claims are used in wide-scale repression of the Muslim population of western China. The Trump administration's decision to put the company, Hangzhou Hikvision Digital Technology Co, on a blacklist last week has prompted at least two of the pension plans to say they are reviewing or monitoring that development. The blacklist applies to Hikvision and seven other companies because they allegedly enabled the crackdown that has led to mass arbitrary detentions in the Xinjiang region.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Trump administration officials are discussing ways to limit U.S. investors’ portfolio flows into China in a move that would have repercussions for billions of dollars in investment pegged to major indexes, according to people familiar with the internal deliberations.The discussions are occurring as Washington and Beijing negotiate a potential truce in their trade war that’s rattled the world’s two biggest economies and investors for more than a year. They also come as China is removing limits on foreign investment in its financial markets. A U.S. crackdown on capital flows would therefore expose a new pressure point in the economic dispute and cause disruption well beyond the hundreds of billions in tariffs the two sides have levied against each other.Among the options the Trump administration is considering: delisting Chinese companies from U.S. stock exchanges and limiting Americans’ exposure to the Chinese market through government pension funds. Exact mechanisms for how to do so have not yet been worked out and any plan is subject to approval by President Donald Trump, who has given the green light to the discussion, according to one person close to the deliberations. Trump officials are also examining how the U.S. could put limits on the Chinese companies included in stock indexes managed by U.S. firms, three of the people said, although it’s not clear how that would be done. More Chinese companies in recent years have been added to major indexes that a broad array of investors have access to.‘This Is Huge’ as China Threat Dents Markets: Wall Street ReactsFor instance, hundreds of Chinese businesses have been added into the MSCI Inc.’s indexes since last year — raising questions from Florida Republican Senator Marco Rubio and others on Capitol Hill who are advocating for stronger investment restraints and greater scrutiny for Chinese companies in stock indexes and U.S. pension funds. Bloomberg Barclays began adding Chinese bonds to its flagship Global Aggregate Bond Index in April.The S&P 500 Index sold off initially after the news and ended about 0.5% lower, while U.S.-listed shares of China-based companies tumbled. Alibaba Group Holding sank 5.2%, JD.com Inc. lost 6%, and Baidu Inc. fell 3.7%.The White House has been discussing its plans with Rubio. It is now considering whether to back legislation he put forward over the summer that provoked much debate over the issue of how to protect U.S. investors with funds allocated into what are often opaque Chinese companies.The White House has not had any discussions with the Chinese government over the issue, said one person close to the administration. It also wants to keep any action isolated from the broader trade negotiations now underway, the person said.But high on the list of U.S. concerns is the unusual influence the Chinese government has over private sector companies and restrictions Beijing places on the release of some financial information of even listed Chinese firms.Trade War Hasn’t Stopped Wall Street’s $9 Billion China RushThe fresh momentum behind the effort is partly due to a push from lawmakers to demand reciprocity with Beijing and a pending deadline for the government’s main retirement savings fund — administered by the Federal Retirement Thrift Investment Board — to channel billions of dollars into Chinese companies next year, according to several people involved in the discussions.The National Economic Council has been chairing meetings on the issue and the Treasury Department and National Security Council are involved as well, people familiar with the discussions said. While action is not imminent, according to the people, Trump’s advisers are talking through the various options and their expected impact.At a dinner hosted by the Center for Strategic and International Studies in Washington last week, a group of China and finance experts debated the value and risks of a financial decoupling from Beijing, including how it could be done and what the impact on U.S. investors would be.Among the speakers was White House economic adviser Larry Kudlow, who declined to discuss any specifics, according to people who attended the dinner.Supportive MoodThe evening also featured deputy national security adviser Matt Pottinger, a China hawk who was just appointed the No. 2 at Trump’s NSC, as well as members of Congress.The push to unilaterally limit Chinese access to American capital is spearheaded by White House trade adviser Peter Navarro, one of Trump’s most hawkish aides, and officials at the NSC, but people involved in the process say even more dovish advisers have rallied behind some of their suggestions.An NSC spokesman and Navarro declined to comment, and Pottinger didn’t respond to a request for comment. Spokesmen for the White House and the Treasury also declined to comment. What Bloomberg’s Economists Say...“The U.S. has a comparative advantage in provision of financial services. A longstanding U.S. priority has been to open China’s market to its firms and investors. In the last few years, they have gained traction, with China removing barriers to foreign financial institutions and lifting caps on foreign investors. A policy which placed barriers in the path of U.S. portfolio flows to China would sacrifice those gains.”—Tom Orlik, chief economistClick here for the full insightThe arguments for action inside the Trump team vary from simply enforcing U.S. transparency laws and creating a level of reciprocity, to raising national-security concerns with some of the Chinese companies that American pension funds are exposed to, according to people familiar with the conversations.Some of those companies are firms that the U.S. government has identified as bad actors or has imposed sanctions against. The argument continues that Americans would unlikely want to invest in those companies if they had the choice.The market capitalization of the 156 Chinese companies, including at least 11 state-owned firms, listed on the three-largest U.S. exchanges — the NASDAQ, New York Stock Exchange and NYSE American — stood at a collective $1.2 trillion as of late February, according to a report by the U.S.-China Economic and Security Review Commission.China earlier this month removed a $300 billion cap on overseas purchases of Chinese stocks and bonds meaning global funds no longer need to apply to purchase quotas to buy the assets. The move is designed to lure more foreign capital into Chinese markets.Next Big PhaseRoger Robinson, president and CEO of RWR Advisory Group who has been working on the issue since the ’90s, said this type of pressure can make a difference. “Treating the unequal financial dimensions and undisclosed material risks associated with China’s presence in the U.S. capital markets will likely represent the next big phase in the bilateral economic relationship,” he said.One of the most extreme arguments for cutting China off from American capital — advanced by Navarro and outside advisers like Steve Bannon — is that U.S. investments in Chinese companies or on China’s exchanges mean that Americans are unwittingly giving financial support to the Chinese Communist Party and a rising strategic and economic rival.QuicktakeHow China’s Trying to Woo Foreigners to Buy BondsTrump would also have the support of hardline advocates, like Bannon, his former chief strategist, and hedge fund manager Kyle Bass. Both are leading the Committee on the Present Danger: China. It’s a group that advocates for total economic decoupling as a way to secure America’s national security.In a recent “threat briefing” — which is how the group titles its meetings — Bannon said American financing have helped spur China’s economic ambitions and technological advances.“The Frankenstein monster that we have to destroy is created by the West. It’s created by our capital,” Bannon said at the Sept. 12 briefing.Rule of Law While some administration officials see these steps as giving the U.S. more leverage in the trade negotiations, others are working hard to ensure the two are kept separate. At the same time, the administration is hesitant to move forward on this out of fear that the already fragile economic relationship between Beijing and Washington could collapse.In particular, officials at the Treasury Department and the National Economic Council are wary of how any action could spook investors and are trying to signal to relevant stakeholders that the rule of law can be trusted. Those officials would want to frame any move as taking action against known bad actors that have persistently been out of compliance with U.S. laws.The NEC is still working on an analysis of the potential impact of any moves targeting financial flows. Just when that might be completed is unclear. Nathan Sheets, former Treasury undersecretary for international affairs, said action to delist Chinese companies or direct American dollars away from certain firms would be “a big deal” for markets and the bilateral relationship. “Both of those would be very disruptive. On the order of a kind of Huawei announcement,” he added, referring to the Trump administration’s blacklisting of China’s biggest telecommunications-equipment manufacturer.Capital Hill HawksRubio, who sponsored the so-called EQUITABLE Act, is the biggest champion of such efforts on the Hill and his public comments largely mirror what the White House is discussing. The senator applauded the White House’s work on the issue.“This administration deserves credit for their efforts to deal with the threat that the Chinese government and Communist Party poses to U.S. national and economic security, including how Beijing takes advantage of its access to U.S. capital markets for predatory purposes,” Rubio said in a statement.(Updates with markets in sixth paragraph.)\--With assistance from Saleha Mohsin and Mark Tannenbaum.To contact the authors of this story: Jenny Leonard in Washington at firstname.lastname@example.orgShawn Donnan in Washington at email@example.comTo contact the editor responsible for this story: Margaret Collins "Peggy" at firstname.lastname@example.org, Brendan MurraySarah McGregorZoe SchneeweissFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The data provider is taking advantage of several growth tailwinds in the financial sector, but is the stock worth investing in?
Iceland may soon reclaim a place on the investment stage through inclusion in global equity indexes, but with pricey stocks, a fading economy and reforms done and dusted, fund managers are not rushing back there. Iceland is already on course to join index provider FTSE Russell's Frontier Market benchmark in September and rival MSCI said late on Tuesday that it might add its Icelandic stock index to its Frontier Market (FM) equity benchmarks. Investors' reaction to the index announcement was muted however, with Reykjavik's main equity index slipping 0.6% on Wednesday -- more than the 0.2% decline in MSCI's FM 100 index of the largest and most liquid frontier market stocks.