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

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.</li>
<li>Six additions for position buildups: F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)
</li>
<li>Six deletions for position buildups: Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)
</li>
</ul>


Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.
Six additions for position buildups: F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)

Six deletions for position buildups: Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)



KOSPI 200 Rebalancing D-60: Names for Position Buildups

<ul>
<li>Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.</li>
<li>Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.</li>
<li>In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.</li>
</ul>


Nine constituents will likely face an increase in the float rate: five stocks for the sale of the majority shareholder's shares and four names for the IPO lockup release.
Kakao Bank (6.35x), LG Corp (003550 KS) (2.62x), Krafton (2.09x), and Woori Financial Group (316140 KS) (1.74x) are expected to have the most significant impact.
In general, float rate changes show price movement by passive flow similar to new changes (adds/deletes). So, we need to consider gradually building up positions two months before the rebalancing.


KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

<ul>
<li>KOSPI 200's June rebalancing review period is six months, from November 1 to April 30. So, we are now over 70% of the review period.</li>
<li>The addition result is similar to the screening results last month. However, one stock was newly screened. Hana Tour Service sits at the filtering borderline within the Consumer Discretionary Sector.</li>
<li>As for deletions, Bukwang Pharmaceutical is screened in the healthcare sector instead of Yungjin Pharmaceutical. S&amp;T Motiv in the Consumer Discretionary Sector is additionally listed as a deletion candidate.</li>
</ul>


KOSPI 200's June rebalancing review period is six months, from November 1 to April 30. So, we are now over 70% of the review period.
The addition result is similar to the screening results last month. However, one stock was newly screened. Hana Tour Service sits at the filtering borderline within the Consumer Discretionary Sector.
As for deletions, Bukwang Pharmaceutical is screened in the healthcare sector instead of Yungjin Pharmaceutical. S&amp;T Motiv in the Consumer Discretionary Sector is additionally listed as a deletion candidate.


KOSPI 200 Rebalancing Screening: Few Noticeable Changes in the Race

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance.</li>
<li>These top 10potential inclusionsare down on average 4.4% YTD, outperforming KOSPI which is down 10.1% YTD.</li>
<li>These top 10 potential exclusions are down on average 12.3% YTD, underperforming KOSPI which is down 10.1% YTD.</li>
</ul>


In this insight, we discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance.
These top 10potential inclusionsare down on average 4.4% YTD, outperforming KOSPI which is down 10.1% YTD.
These top 10 potential exclusions are down on average 12.3% YTD, underperforming KOSPI which is down 10.1% YTD.


Initial Thoughts on the KOSPI200 Rebalance in June 2022

<ul>
<li>KRX calculates floats fairly aggressively even in new IPOs. This was symbolically shown in the case of Kakao Pay, which received a 35% float rate.</li>
<li>So, we need a trading setup that raises the float rate prediction range in future KOSPI 200 Fast Entry cases.</li>
<li>Considering that rebalancing trading that occurs on the implementation day is now partially digested in regular trading hours, we need to consider getting out positions before the closing auction hours.</li>
</ul>


KRX calculates floats fairly aggressively even in new IPOs. This was symbolically shown in the case of Kakao Pay, which received a 35% float rate.
So, we need a trading setup that raises the float rate prediction range in future KOSPI 200 Fast Entry cases.
Considering that rebalancing trading that occurs on the implementation day is now partially digested in regular trading hours, we need to consider getting out positions before the closing auction hours.


KOSPI 200 New Entrants: KRX-Concluded Float Rates & Rebalancing Trading Pattern Today

South Korea

Bukwang Pharmaceutical Co., Ltd. produces oral hygienic, and pharmaceutical products.  The Company's products include over-the-counter drugs, toothpastes, and toothbrushes.

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Bukwang Pharmaceutical (003000 KS)

KOSPI 200 Rebalancing D-60: Names for Position Buildups

This post suggests six additions and six deletions that we should consider for position buildups as we are two months away from the KOSPI 200...

Sanghyun Park

KOSPI 200 Index Rebalancing: Constituents Subject to Float Rate Increase

This post investigates those among the KOSPI 200 constituents, which will face an increase in the float rate, thereby attracting a meaningful level...

Sanghyun Park

KOSPI 200 Rebalancing Screening: Few Noticeable Changes in the Race

This post offers the latest update on the KOSPI 200 rebalancing screening. There are a few noticeable changes: Hana Tour (addition) and Bukwang...

Sanghyun Park

Initial Thoughts on the KOSPI200 Rebalance in June 2022

We discuss the potential additions and deletions in the upcoming June 2022 KOSPI200 rebalance. Top 10 potential inclusions are down on average 4.4%...

Douglas Kim

KOSPI 200 New Entrants: KRX-Concluded Float Rates & Rebalancing Trading Pattern Today

Kakao Pay eventually received a 35% float rate, meaning that KRX has included all of Alipay's non-locked stake in the float.

Sanghyun Park

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