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>In KOSPI, all eyes are on Ottogi Corporation, a constituent of the KOSPI 200 index. 8.38% of SO's shares are about to be unleashed.</li>
<li>In KOSDAQ, the focus is on CanariaBio and Coocon Corp, both of which are constituents of the KOSDAQ 150. They are set to release shares on October 28th.</li>
<li>For Fadu, a two-month IPO lock-up is being released, accounting for 2.5% of SO.</li>
</ul>


In KOSPI, all eyes are on Ottogi Corporation, a constituent of the KOSPI 200 index. 8.38% of SO's shares are about to be unleashed.
In KOSDAQ, the focus is on CanariaBio and Coocon Corp, both of which are constituents of the KOSDAQ 150. They are set to release shares on October 28th.
For Fadu, a two-month IPO lock-up is being released, accounting for 2.5% of SO.


Details About KOSPI & KOSDAQ Lock-Up Release Stocks for October

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.</li>
<li>These 40 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. </li>
<li>Among these 40 stocks, the top five market cap stocks include HK inno.N, PhilEnergy, CJ CGV Co Ltd, Sure Soft Tech, and CanariaBio.</li>
</ul>


We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.
These 40 stocks on average could be subject to further selling pressures in August and could underperform relative to the market. 
Among these 40 stocks, the top five market cap stocks include HK inno.N, PhilEnergy, CJ CGV Co Ltd, Sure Soft Tech, and CanariaBio.


End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>There are 11 inclusions and 11 exclusions for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the December rebalance to be implemented at the close on 8 December.</li>
<li>We had forecast most of the changes (10 adds and 9 deletes), so there are a few surprises. The inclusion of <a href="https://www.smartkarma.com/entities/sillajen-inc" target="_blank" data-smartkarma-citation="entities:22838:1" rel="noopener">SillaJen Inc (215600 KS)</a> is the biggest one.</li>
<li>The adds to the index become short sell eligible from the open of trading on 9 December while the deletions will not be short sell eligible from the same time.</li>
</ul>


There are 11 inclusions and 11 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance to be implemented at the close on 8 December.
We had forecast most of the changes (10 adds and 9 deletes), so there are a few surprises. The inclusion of SillaJen Inc (215600 KS) is the biggest one.
The adds to the index become short sell eligible from the open of trading on 9 December while the deletions will not be short sell eligible from the same time.


KOSDAQ150 Index Rebalance: 11 Changes with a Couple of Surprises

<ul>
<li>Korea Exchange announced the KOSPI 200, KOSDAQ 150, and KRX 300 rebalance changes today. Lotte Confectionery will be added and Samyang Holdings will be deleted from the KOSPI 200 index.</li>
<li>The rebalances of these Korean indices are regularly updated twice a year. The changes to these indices will be effective starting 9 December. </li>
<li>The potential exclusion candidates for KOSPI 200 in 2023 include K Car, Handsome, HS Enterprise, Zinus, and Hyundai Home Shopping. </li>
</ul>


Korea Exchange announced the KOSPI 200, KOSDAQ 150, and KRX 300 rebalance changes today. Lotte Confectionery will be added and Samyang Holdings will be deleted from the KOSPI 200 index.
The rebalances of these Korean indices are regularly updated twice a year. The changes to these indices will be effective starting 9 December. 
The potential exclusion candidates for KOSPI 200 in 2023 include K Car, Handsome, HS Enterprise, Zinus, and Hyundai Home Shopping. 


KOSPI 200 & KOSDAQ 150 Rebalance Changes + KOSPI 200 & KOSDAQ 150 Exclusion Candidates in 2023

<ul>
<li>Korea's partial short-selling system, implemented in May last year, created a new trading pattern, a surge in short selling for new additions, immediately after index rebalancing.</li>
<li>Canaria Bio, HPSP, and SungEel Hitech are highly likely to be the primary targets for short selling, but there is one more thing we need to consider.</li>
<li>KODEX will likely begin rebalancing buying on HPSP and SungEel on December 9, the same day the short-selling starts for them. So, we need a more flexible setup.</li>
</ul>


Korea's partial short-selling system, implemented in May last year, created a new trading pattern, a surge in short selling for new additions, immediately after index rebalancing.
Canaria Bio, HPSP, and SungEel Hitech are highly likely to be the primary targets for short selling, but there is one more thing we need to consider.
KODEX will likely begin rebalancing buying on HPSP and SungEel on December 9, the same day the short-selling starts for them. So, we need a more flexible setup.


Shorting Setup on Additions to KS200/KQ150 with KODEX Battery ETF Flow

South Korea

Sunjin Co., Ltd. is an animal feedstuffs manufacturing company.  The Company's products include feeds for hogs, dairy cows, cattle, poultry, and dogs.  Sunjin also produces meat and processed meat products.

Farmstory Co., Ltd. processes, manufactures, and markets assorted feed, especial ly for pigs.  The Company markets its products through a membership sales system .  Dodram also breeds hogs and operates a hog raising association.

CJ Seafood Corp. produces processed seafood products such as fish cakes, crab meat, and fish fillets. Samho F&G exports its products to the United States, China, and Europe.

Silla Co., Ltd. is a deep-sea fishing company.  The Company processes and exports seafood products.  The Company also manufactures textiles and operates golf resort through its subsidiary.

Hanil Feed Co., Ltd. manufactures and markets formulated animal feedstuff. The Company's products include mixed feeds, single grain feeds, and feed supplements for cattle, dairy cows, hogs, and poultry.

Sajo Industries Co., Ltd. is a deep-sea fishing company, which catches, processes, and sells fish including blue fin, albacore, skip jack, sword fish, and black marlin.  The Company  manufactures canned tuna, frozen fish, popcorn, dried seaweed, hot pepper paste and bean paste.  Sajo also operates in the hog meat processing industry.

Haitai Confectionery & Foods Co., Ltd. manufactures and markets confectionery products.  The Company offers candies, ice creams, snacks, biscuits, chocolates, and chewing gums as well as provides frozen foods such as dumplings, pizza, fried foods, and patties.

Daehan Flour Mills Co., Ltd. processes, manufactures, and sells wheat flour under the brand name Gompyo.  The Company supplies its products to the baking goods, noodle, and animal feed manufacturers.  In addition, Daehan Flour Mills produces coffee cream, pasta, and baking mixes.

Dongaone Co., Ltd. is a flour mill and animal feed company.  The Company's production involves the manufacturing, development, and distribution of its bakery flour and powder, primarily through business-to-business markets.  DongA One's animal feed industry is divided into feed for chickens, pigs, dogs, fish and pets with facilities in Dangjin and Wonju South Korea.

Nong Woo Bio Co., Ltd. specializes in producing vegetable seeds and saplings. The Company researches, develops, processes, and distributes a variety of seeds such as peppers, watermelons, radishes, cabbages, and squashes.  Nong Woo Bio operates research facilities in China, Indonesia, and the United States.

Lifecore Biomedical, Inc. operates as a contract development and manufacturing company. The Company offers sterile injectable pharmaceutical products in syringes and vials as well as the manufactures pharmaceutical-grade sodium hyaluronate. Lifecore Biomedical serves customers worldwide.

TH Plantations Bhd is an investment holding company. The Company also cultivates palm oil, processes FFB, Markets CPO, PO, and FFB, as well as provides management services.

AOHATA Corporation produces and sells processed foods including various types of jams, sources, canned fruits, and desserts.  The Company mainly sells those products through Q.P. Corp. and Nakashimato Co., Ltd..

PT Austindo Nusantara Jaya Tbk ("ANJ") is a food and renewable energy company. The Company engages principally in palm oil and sago palm production and processing for food. As for renewable energy, it engages in power generation from geothermal and bio-gas. Austindo Nusantara Jaya also has less than 10% of its investments remaining in legacy businesses.

TIPCO Foods PCL produces and bottles fruit juices and other beverages.  The Company produces orange, mixed fruit and vegetable juices; spring water; and mineral water.

Lotus Chocolate Co. Ltd. manufactures cocoa and chocolate products. The Company sells its products domestically in India and abroad.

Teo Seng Capital Bhd. is an investment holding company principally involved in poultry farming. The Company is also involved in the manufacture and marketing of paper egg trays and animal feeds, along with the distribution of animal health products.

Rimbunan Sawit Bhd cultivates oil palms and process palm oil.  The Company owns about 13,500ha of plantation land and operates its palm oil mill.

NAKAMURAYA CO., LTD. produces and sells Japanese cakes and crackers.  The Company also provides processed foods including Indian curry, pasta sauce and canned food under the NAKAMURAYA brand.

Del Monte Pacific Limited produces and markets packaged vegetable and fruit, beverage and culinary products. The Group has the exclusive right to use the Del Monte brand for packaged products in the USA, South America, Philippines, the Indian subcontinent and Myanmar, and the S&W brand for both packaged and fresh products globally except Australia and New Zealand.

CANARIABIO Inc. operates as a new anticancer drugs development biotechnology company. The Company develops ovarian cancer, pancreatic cancer, gynecological cancer, and metastatic breast cancer immunotherapy drugs. CANARIABIO also produces sheep, pig, hog, poultry, and sweetened feed products.

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CanariaBio (016790 KS)

Details About KOSPI & KOSDAQ Lock-Up Release Stocks for October

This post provides information regarding the October lock-up release stocks in KOSPI and KOSDAQ and explores the stocks requiring our special...

Sanghyun Park

End of Mandatory Lock-Up Periods for 40 Companies in Korea in August 2023

We discuss the end of the mandatory lock-up periods for 40 stocks in Korea in August 2023, among which 2 are in KOSPI and 38 are in KOSDAQ.

Douglas Kim

KOSDAQ150 Index Rebalance: 11 Changes with a Couple of Surprises

There are 11 changes at the Dec rebal: mostly in line with forecasts. SillaJen is a surprise add; Devsisters is a surprise delete. Short interest...

Brian Freitas

KOSPI 200 & KOSDAQ 150 Rebalance Changes + KOSPI 200 & KOSDAQ 150 Exclusion Candidates in 2023

Korea Exchange announced the KOSPI 200, KOSDAQ 150, and KRX 300 rebalance changes today. Lotte Confectionery will be added and Samyang Holdings...

Douglas Kim

Shorting Setup on Additions to KS200/KQ150 with KODEX Battery ETF Flow

This post examines the shorting situation of the KS200/KQ150 additions in the upcoming rebalancing with the potentially mitigating flow from the...

Sanghyun Park

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