Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<div class="content-highlight">In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range" lasting from 8 January to 10 February 2021 (see chart below). Sometimes, finding out what stocks and sectors outperform in a box trading range could lead to some clues in helping to understand what stocks and sectors could outperform in the coming weeks. From 8 January to 10 February, KOSPI has been trading in a box range and its is down slightly (1.6%) in this period. </div>

In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range" lasting from 8 January to 10 February 2021 (see chart below). Sometimes, finding out what stocks and sectors outperform in a box trading range could lead to some clues in helping to understand what stocks and sectors could outperform in the coming weeks. From 8 January to 10 February, KOSPI has been trading in a box range and its is down slightly (1.6%) in this period. 

Winners & Losers in the KOSPI Box Trading Range & Return of Money Velocity Post End of Lock Down?

Event-Driven

<div class="content-highlight">It was announced on 25 January that Kakao Page and Kakao M held a board meeting to decide on a merger and launch a newco called Kakao Entertainment. The two companies plan to complete the merger on 1 March after the final approval at the shareholders' meeting on 26 January. The merger ratio is calculated as 1 (Kakao Page) to 1.31 (Kakao M).</div>

It was announced on 25 January that Kakao Page and Kakao M held a board meeting to decide on a merger and launch a newco called Kakao Entertainment. The two companies plan to complete the merger on 1 March after the final approval at the shareholders' meeting on 26 January. The merger ratio is calculated as 1 (Kakao Page) to 1.31 (Kakao M).

The Merger of Kakao Page & Kakao M to Create Kakao Entertainment

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

The KRX announced the KOSPI 200 rebalancing results (biannually).The effective date is December 12, Friday.I put the full list of additions and deletions with volatility, price upside, and liquidity for each stock in the DETAIL section.

The KRX announced the KOSPI 200 rebalancing results (biannually).The effective date is December 12, Friday.I put the full list of additions and deletions with volatility, price upside, and liquidity for each stock in the DETAIL section.

KOSPI 200 Rebalancing Results: List, Volatility, Upside, & Liquidity

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example <a href="https://www.smartkarma.com/entities/nanos-co-ltd" target="_blank" data-smartkarma-citation="entities:16796:1" rel="noopener">Nanos Co Ltd (151910 KS),</a>which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including <a href="https://www.smartkarma.com/entities/sang-a-frontec-co-ltd" target="_blank" data-smartkarma-citation="entities:20692:1" rel="noopener">Sang A Frontec (089980 KS)</a>, Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), <a href="https://www.smartkarma.com/entities/koreacenter-com-co-ltd" target="_blank" data-smartkarma-citation="entities:28329:1" rel="noopener">Koreacenter.com Co Ltd (290510 KS)</a>, and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions.

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example Nanos Co Ltd (151910 KS),which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including Sang A Frontec (089980 KS), Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), Koreacenter.com Co Ltd (290510 KS), and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions. 

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, <a href="https://www.smartkarma.com/entities/dong-a-socio-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:4271:1" rel="noopener">Dong A Socio Holdings (000640 KS), </a>and <a href="https://www.smartkarma.com/entities/dong-a-st-co-ltd" target="_blank" data-smartkarma-citation="entities:16873:1" rel="noopener">Dong A St (170900 KS)</a>.Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.

KRX announced the rebalance to the KOSPI200 index today. There was not much surprise among the new 10 additions, which included stocks such as Samyang Foods, Zinus, and Kiwoom Securities. However, there was some surprises among the deletions including Unid, Dong A Socio Holdings (000640 KS), and Dong A St (170900 KS).Among the newly included companies, in terms of their fundamental business outlook and reasonable valuations, we think Samyang Foods, Zinus, and Hanwha Systems fit into these categories. We would be cautious on Big Hit Entertainment, CS Wind, and Shinpoong Pharm as we think there could be some sellers on investors that trade on the "sell on news" strategy of being included in KOSPI 200.  

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

South Korea

HYBE Co., Ltd. operates as an entertainment company. The Company provides music production, album distribution, entertainers management, publicity, planning, training, and other services. HYBE also makes television shows.

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HYBE (352820 KS)

Winners & Losers in the KOSPI Box Trading Range & Return of Money Velocity Post End of Lock Down?

In this insight, we discuss about the winners and losers among the top 100 stocks in KOSPI, especially in the most recent "KOSPI Box trading range"...

Douglas Kim

The Merger of Kakao Page & Kakao M to Create Kakao Entertainment

On 25 January, Kakao Page and Kakao M announced that they held a board meeting to decide on a merger and launch Kakao Entertainment, which would be...

Douglas Kim

KOSPI 200 Rebalancing Results: List, Volatility, Upside, & Liquidity

The KRX announced the KOSPI 200 rebalancing results. This post has the full list of additions and deletions with volatility, price upside, and...

Sanghyun Park

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

We highlight the KOSDAQ150 and KRX300 indices rebalances. There are some interesting new names, especially among those that are over lapping in...

Douglas Kim

KOSPI 200 Index Rebalances: No Surprises Among Additions, A Few Surprises Among Deletions

KRX anounced its KOSPI200 index rebalance. There were no surprises among the new additions but a few surprises among the deletions.

Douglas Kim

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