Latest news with #Smartkarma
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Business Standard
4 days ago
- Business
- Business Standard
Market regulator Sebi move to clip HDFC, ICICI wings in Bank Nifty
The latest measures introduced by the Securities and Exchange Board of India (Sebi) for the futures & options (F&O) segment may adversely impact HDFC Bank and ICICI Bank stocks. Market participants anticipate a churn of nearly $1 billion as passive funds tracking the Bank Nifty and Bankex indices adjust to the new regulations. They expect significant selling pressure, particularly on HDFC Bank and ICICI Bank. Currently, both banking giants carry a weighting of over 25 per cent each in the 12-member Nifty Bank index, a widely followed benchmark in the derivatives segment. In a move aimed at reducing index concentration and volatility, the markets regulator has now capped the weighting of a single stock in non-benchmark indices at 20 per cent. It has also mandated that such indices must include at least 14 constituents, with the combined weighting of the top three components limited to 45 per cent. Experts said Sebi's move came amid fears that thematic indices run the risk of manipulation due to high concentration of individual stocks. These changes, announced by the markets regulator on Thursday, will be implemented by November 3. Brian Freitas of Periscope Analytics, who publishes research on the Smartkarma platform, expects significant outflows from HDFC Bank and ICICI Bank as a result of the changes. He estimates that HDFC Bank could face selling to the tune of ₹2,140 crore, while ICICI Bank may see ₹1,673 crore in sales, in line with the newly imposed 20 per cent cap on weightings. Conversely, Freitas anticipates the inclusion of Yes Bank and Union Bank of India in the Bank Nifty index, taking the total number of constituents to 14. Their additions are expected to trigger inflows of ₹888 crore and ₹600 crore for the respective stocks. Other Bank Nifty components may see inflows ranging from ₹60 crore to ₹400 crore due to redistribution of capital following the reduced weighting of HDFC Bank and ICICI Bank. While the recommendations must be implemented by November 3, it is likely that the index provider will make these changes during the next rebalance in September, according to Freitas. There is a small possibility that the capping changes could be implemented in the June quarter, with the two index inclusions occurring in the September quarter. Alternatively, the capping changes could be rolled out in two phases: The first at the end of June and the second (including the two inclusions) in September, he said. A phased rollout could help in smooth implementation. The churn resulting from the reconstitution of the Bankex will be in addition to this. However, this index is not as widely tracked by passive funds as the Bank Nifty index.
Bloomberg
16-05-2025
- Business
- Bloomberg
Pop Mart, BeiGene Likely to Be Included in Hang Seng Index
Pop Mart International Group Ltd. may be among prime candidates for inclusion in the upcoming review of Hong Kong's stock benchmark, as the index compiler seeks to expand the constituents to better reflect the market's composition. The 'monster run-up' in the toymaker's shares over the past year makes it a potential entrant, Brian Freitas, founder of Periscope Analytics who publishes on Smartkarma, wrote in a note. Short interest in the stock is also trading near the lows.
Asharq Al-Awsat
09-04-2025
- Business
- Asharq Al-Awsat
Uniqlo Operator Fast Retailing Seen Posting 14% Jump in Q2 Profit as Tariffs Loom
The operator of Uniqlo, Japan's Fast Retailing, is expected to post another quarter of strong earnings on Thursday, but the focus will be on how the global clothing chain navigates a trade environment thrown into disarray by new US tariffs. Fast Retailing is expected to post a 14% rise in operating profit to 125.9 billion yen ($866 million) in the three months through February from a year earlier, based on the LSEG consensus forecast drawn from six analysts. That would be a record for the second quarter and a near doubling of the 7.4% profit growth of the first quarter. From one store in Hiroshima, western Japan, 40 years ago, Uniqlo has grown to more than 2,500 locations across the world, selling inexpensive fleeces and cotton shirts made primarily in China and other Asian manufacturing hubs. But that business model has been upended by widespread tariffs announced by US President Donald Trump, along with retaliation by some of America's trading partners. The company has recently looked to North America and Europe for growth due to a slowing economy in China, its largest overseas consumer market with more than 900 Uniqlo stores on the mainland. The tariffs will certainly be a negative for Fast Retailing, said independent analyst Mark Chadwick, but the measures will have the same impact on its retail peers and have a worse effect on other industries. "Textile supply chains are probably more flexible than, say auto supply chains," said Chadwick, who writes on the Smartkarma platform. "In short, US tariffs will have a negative impact on Fast earnings looking out over the next 12 months, but less so than other global firms like Nintendo, Toyota." SHARES RETREAT AFTER 2024 JUMP Fast Retailing shares have fallen more than 4% this month, as Trump laid out his tariffs plan. They are down 19% in 2025, after surging nearly 50% last year. Its founder Tadashi Yanai, Japan's richest man, aims to make his company the world's No. 1 clothing brand. Yanai, due to speak at Thursday's earnings briefing, has long been an advocate of free trade and has defended the company's business dealings in China when human rights concerns there have sprung up. Trump said Japan would be hit with a 24% reciprocal tariff on non-auto products, while duties on Chinese goods will rise to 104%. UBS analysts said that Uniqlo goods shipped to North America are procured from sources outside China, and Fast Retailing's tariff costs would be an estimated 34.3 billion yen next fiscal year, curbing business profit by about 6%. "We will be watching closely whether a heightened price consciousness among consumers leads them to re-rate the balance between value and pricing at Uniqlo, potentially translating into business opportunities over the medium term," UBS's Takahiro Kazahaya wrote in a report this week. Fast Retailing expects operating profit to reach 530 billion yen in the fiscal year ending in August, which would be a fourth straight year of record earnings. Domestic sales have recently gotten a boost from a surge in duty-free shopping amid a tourism boom in Japan fueled by a weak yen.
Yahoo
09-04-2025
- Business
- Yahoo
Uniqlo operator Fast Retailing seen posting 14% jump in Q2 profit as tariffs loom
By Rocky Swift TOKYO (Reuters) - The operator of Uniqlo, Japan's Fast Retailing, is expected to post another quarter of strong earnings on Thursday, but the focus will be on how the global clothing chain navigates a trade environment thrown into disarray by new U.S. tariffs. Fast Retailing is expected to post a 14% rise in operating profit to 125.9 billion yen ($866 million) in the three months through February from a year earlier, based on the LSEG consensus forecast drawn from six analysts. That would be a record for the second quarter and a near doubling of the 7.4% profit growth of the first quarter. From one store in Hiroshima, western Japan, 40 years ago, Uniqlo has grown to more than 2,500 locations across the world, selling inexpensive fleeces and cotton shirts made primarily in China and other Asian manufacturing hubs. But that business model has been upended by widespread tariffs announced by U.S. President Donald Trump, along with retaliation by some of America's trading partners. The company has recently looked to North America and Europe for growth due to a slowing economy in China, its largest overseas consumer market with more than 900 Uniqlo stores on the mainland. The tariffs will certainly be a negative for Fast Retailing, said independent analyst Mark Chadwick, but the measures will have the same impact on its retail peers and have a worse effect on other industries. "Textile supply chains are probably more flexible than, say auto supply chains," said Chadwick, who writes on the Smartkarma platform. "In short, U.S. tariffs will have a negative impact on Fast earnings looking out over the next 12 months, but less so than other global firms like Nintendo, Toyota." SHARES RETREAT AFTER 2024 JUMP Fast Retailing shares have fallen more than 4% this month, as Trump laid out his tariffs plan. They are down 19% in 2025, after surging nearly 50% last year. Its founder Tadashi Yanai, Japan's richest man, aims to make his company the world's No. 1 clothing brand. Yanai, due to speak at Thursday's earnings briefing, has long been an advocate of free trade and has defended the company's business dealings in China when human rights concerns there have sprung up. Trump said Japan would be hit with a 24% reciprocal tariff on non-auto products, while duties on Chinese goods will rise to 104%. UBS analysts said that Uniqlo goods shipped to North America are procured from sources outside China, and Fast Retailing's tariff costs would be an estimated 34.3 billion yen next fiscal year, curbing business profit by about 6%. "We will be watching closely whether a heightened price consciousness among consumers leads them to re-rate the balance between value and pricing at Uniqlo, potentially translating into business opportunities over the medium term," UBS's Takahiro Kazahaya wrote in a report this week. Fast Retailing expects operating profit to reach 530 billion yen in the fiscal year ending in August, which would be a fourth straight year of record earnings. Domestic sales have recently gotten a boost from a surge in duty-free shopping amid a tourism boom in Japan fuelled by a weak yen. ($1 = 145.3900 yen) Sign in to access your portfolio
Reuters
09-04-2025
- Business
- Reuters
Uniqlo operator Fast Retailing seen posting 14% jump in Q2 profit as tariffs loom
TOKYO, April 9 (Reuters) - The operator of Uniqlo, Japan's Fast Retailing (9983.T), opens new tab, is expected to post another quarter of strong earnings on Thursday, but the focus will be on how the global clothing chain navigates a trade environment thrown into disarray by new U.S. tariffs. Fast Retailing is expected to post a 14% rise in operating profit to 125.9 billion yen ($866 million) in the three months through February from a year earlier, based on the LSEG consensus forecast drawn from six analysts. That would be a record for the second quarter and a near doubling of the 7.4% profit growth of the first quarter. From one store in Hiroshima, western Japan, 40 years ago, Uniqlo has grown to more than 2,500 locations across the world, selling inexpensive fleeces and cotton shirts made primarily in China and other Asian manufacturing hubs. But that business model has been upended by widespread tariffs announced by U.S. President Donald Trump, along with retaliation by some of America's trading partners. The company has recently looked to North America and Europe for growth due to a slowing economy in China, its largest overseas consumer market with more than 900 Uniqlo stores on the mainland. The tariffs will certainly be a negative for Fast Retailing, said independent analyst Mark Chadwick, but the measures will have the same impact on its retail peers and have a worse effect on other industries. "Textile supply chains are probably more flexible than, say auto supply chains," said Chadwick, who writes on the Smartkarma platform. "In short, U.S. tariffs will have a negative impact on Fast earnings looking out over the next 12 months, but less so than other global firms like Nintendo, Toyota." SHARES RETREAT AFTER 2024 JUMP Fast Retailing shares have fallen more than 4% this month, as Trump laid out his tariffs plan. They are down 19% in 2025, after surging nearly 50% last year. Its founder Tadashi Yanai, Japan's richest man, aims to make his company the world's No. 1 clothing brand. Yanai, due to speak at Thursday's earnings briefing, has long been an advocate of free trade and has defended the company's business dealings in China when human rights concerns there have sprung up. Trump said Japan would be hit with a 24% reciprocal tariff on non-auto products, while duties on Chinese goods will rise to 104%. UBS analysts said that Uniqlo goods shipped to North America are procured from sources outside China, and Fast Retailing's tariff costs would be an estimated 34.3 billion yen next fiscal year, curbing business profit by about 6%. "We will be watching closely whether a heightened price consciousness among consumers leads them to re-rate the balance between value and pricing at Uniqlo, potentially translating into business opportunities over the medium term," UBS's Takahiro Kazahaya wrote in a report this week. Fast Retailing expects operating profit to reach 530 billion yen in the fiscal year ending in August, which would be a fourth straight year of record earnings. Domestic sales have recently gotten a boost from a surge in duty-free shopping amid a tourism boom in Japan fuelled by a weak yen. ($1 = 145.3900 yen)
