1/THE BIG SQUEEZE
In just a week, the ‘Reddit crowd’ trade which squeezed out seasoned hedge funds from GameStop has gone global.
Herding on the other side of bearish bets proved so profitable in GameStop and other shorted American stocks that it didn’t take long for copycats to emerge across the globe.
On Jan. 26, a seemingly random buying frenzy lifted a handful of stocks across Europe. Soon enough, traders spotted what UK publisher Pearson, German drugmaker Evotec and property firm Unibail-Rodamco had in common: they were among Europe’s most shorted stocks.
The moves then spread to Asia; on Jan. 28 heavily shorted Australian stocks Webjet, Tassal and InvoCare climbed while Malaysian retail investors debated buying into medical glove makers to squeeze out short-sellers.
(Recasts and adds CEO comment on briefing call)
SYDNEY, Feb 1 (Reuters) - Australia’s Link Administration Holdings Ltd on Monday said it would prioritise a trade sale for its coveted stake in online conveyancing firm PEXA within months, instead of a demerger as it looks to capitalise on a property market rebound.
The strength of the housing market had influenced the decision to sell the stake outright instead of distributing PEXA shares to Link investors, the company said, even though it would mean paying capital gain taxes of about 30% on a deal.
Late last year, attracted by its 44.2% stake in PEXA - the dominant digital property transfer business in real-estate-obsessed Australia - at least two groups tabled unsuccessful bids for Sydney-based shareholder registry firm Link.
India boosted healthcare spending by 135% and lifted caps on foreign investment in its vast insurance market on Monday to help revive an economy that suffered its deepest recorded slump as a result of the pandemic.
Copper prices edged higher on Monday as investors were relieved that China, the world's biggest metals consumer, might not be tightening credit as much as expected.