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>LG Energy's KOSPI 200 Fast Entry review period ended this Monday, and KRX immediately announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&amp;B leaves the Index for LG Energy.</li>
<li>LG Energy's passive inflow is ₩202.2B at the close on March 10, 0.66x ADTV. On the other hand, Dongwon F&amp;B's passive outflow is ₩4.0B, representing 5.84x ADTV.</li>
<li>LG Energy's impact size is large enough to affect the price right before the implementation. In particular, since K-New Deal rebalancing occurs after March 10, the effect can be aggravated.</li>
</ul>


LG Energy's KOSPI 200 Fast Entry review period ended this Monday, and KRX immediately announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&amp;B leaves the Index for LG Energy.
LG Energy's passive inflow is ₩202.2B at the close on March 10, 0.66x ADTV. On the other hand, Dongwon F&amp;B's passive outflow is ₩4.0B, representing 5.84x ADTV.
LG Energy's impact size is large enough to affect the price right before the implementation. In particular, since K-New Deal rebalancing occurs after March 10, the effect can be aggravated.


LG Energy KOSPI 200 Fast Entry: Passive Impact on March 10

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.</li>
<li>This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. </li>
<li>Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. </li>
</ul>


On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100, and KRX 100 effective 3/11/2022.
This has been widely expected by the market. Due to the inclusion in KOSPI 200, investors will be able to short LG Energy Solution starting 11 March. 
Once Dongwon F&amp;B is excluded from the KOSPI 200 index, this could be a key buying opportunity on this stock, given the company's solid fundamentals. 


KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>KRX has announced the Fast Entry inclusion of <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> in the KOSPI200 Index at the close on 10 March. <a href="https://www.smartkarma.com/entities/dongwon-f-b-co-ltd" target="_blank" data-smartkarma-citation="entities:3274:1" rel="noopener">Dongwon F&amp;B (049770 KS)</a> will be deleted.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a>'s inclusion in the KRX Secondary Battery Index and the BBIG Index should be announced in the next few days. That will add to passive buying.</li>
<li>Local institutions have been buyers on <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> since listing while retail and foreign investors have been sellers. There is a biggish lock up expiry coming up.</li>
</ul>


KRX has announced the Fast Entry inclusion of LG Energy Solution (373220 KS) in the KOSPI200 Index at the close on 10 March. Dongwon F&amp;B (049770 KS) will be deleted.

LG Energy Solution (373220 KS)'s inclusion in the KRX Secondary Battery Index and the BBIG Index should be announced in the next few days. That will add to passive buying.
Local institutions have been buyers on LG Energy Solution (373220 KS) since listing while retail and foreign investors have been sellers. There is a biggish lock up expiry coming up.


KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out

<ul>
<li>The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.</li>
<li>LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.</li>
<li>F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.</li>
</ul>


The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.
LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.
F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.


KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

<ul>
<li>LG Energy has the second-largest market cap on KOSPI. For Fast Entry to fail, the price must lose 90% of its current value. So, Fast Entry is a foregone conclusion. </li>
<li>
The review period ends on February 21. The implementation date is March 11, and the announcement will likely be made public around February 24-25.</li>
<li>The stock with the lowest market cap from May to October last year will leave the Index. The victim is Dongwon F&amp;B, beating Nexen Tire by a very narrow margin. 
</li>
</ul>


LG Energy has the second-largest market cap on KOSPI. For Fast Entry to fail, the price must lose 90% of its current value. So, Fast Entry is a foregone conclusion. 

The review period ends on February 21. The implementation date is March 11, and the announcement will likely be made public around February 24-25.
The stock with the lowest market cap from May to October last year will leave the Index. The victim is Dongwon F&amp;B, beating Nexen Tire by a very narrow margin. 



Clearing up Misunderstandings About LG Energy K200 Fast Entry & Likely Deletion Stock

South Korea

Dongwon F&B Co., Ltd. manufactures various processed food products. The Company' s products include agricultural and marine products, beverages, dairy products, processed meat, fast food, frozen food, and ginseng. The company's main product in early stage was canned tuna and expanded their business into a variety of food production.

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Dongwon F&B (049770 KS)

LG Energy KOSPI 200 Fast Entry: Passive Impact on March 10

KRX announced LG Energy's Fast Entry to KOSPI 200. Dongwon F&B leaves the Index. The passive impact on the implementation date, combined with K-New...

Sanghyun Park

KOSPI 200: LG Energy Solution Inclusion and Dongwon F&B Exclusion

On 22 February, the KRX announced that LG Energy Solution (373220 KS) will be included in numerous local indices including KOSPI 200, KOSPI 100,...

Douglas Kim

KOSPI200 Index Rebalance (March): LG Energy IN; Dongwon F&B Out

LG Energy will be added to the KOSPI200 Index at the close on 10 March, while Dongwon F&B will be deleted. There will be a large KOSPI200 basket...

Brian Freitas

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

Clearing up Misunderstandings About LG Energy K200 Fast Entry & Likely Deletion Stock

There seem to be misunderstandings and confusion about LG Energy's KOSPI 200 Fast Entry. This post seeks to correct these misunderstandings.

Sanghyun Park

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