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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.</li>
<li>Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.</li>
<li>Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.</li>
</ul>


It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.
Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.
Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.


<ul>
<li>There will be 6 additions and 7 deletions for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the December rebalance that will be implemented on 9 December.</li>
<li>
<a href="https://www.smartkarma.com/entities/hyundai-heavy-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries (329180 KS)</a> and <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> are Fast Entry inclusions to the index, while <a href="https://www.smartkarma.com/entities/innocean-worldwide-inc" target="_blank" data-smartkarma-citation="entities:26925:1" rel="noopener">Innocean Worldwide (214320 KS)</a> is a deletion on liquidity.</li>
<li>Depending on the float used by KRX, there could be a sharp move higher on <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> as passive trackers could buy up to 15% of real float.</li>
</ul>


There will be 6 additions and 7 deletions for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the December rebalance that will be implemented on 9 December.

Hyundai Heavy Industries (329180 KS) and Kakao Pay (377300 KS) are Fast Entry inclusions to the index, while Innocean Worldwide (214320 KS) is a deletion on liquidity.
Depending on the float used by KRX, there could be a sharp move higher on Kakao Pay (377300 KS) as passive trackers could buy up to 15% of real float.


KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

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Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Korea Stock Exchange KOSPI 200 / Technical Analysis

<ul>
<li>Korea is a great rotation/laggard bet that was outlined on Oct 12 to work into a long and just met the add zone near the 385 support.</li>
<li>Unloved Korea to see a short squeeze higher that will transition into a full on rally once above 400. 394 is the level to clear to ignite a rally.</li>
<li>Clearing 400 targets the 420/25 resistance points with 437 attracting in 2022.</li>
</ul>


Korea is a great rotation/laggard bet that was outlined on Oct 12 to work into a long and just met the add zone near the 385 support.
Unloved Korea to see a short squeeze higher that will transition into a full on rally once above 400. 394 is the level to clear to ignite a rally.
Clearing 400 targets the 420/25 resistance points with 437 attracting in 2022.


Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight">
In this insight, we discuss the end of the one-month lock-up period for <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> and where the bottom level prices could be for this stock.
There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. 
In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. 
</div>


In this insight, we discuss the end of the one-month lock-up period for Kakao Pay (377300 KS) and where the bottom level prices could be for this stock.
There are 1.09 million shares of Kakao Pay that are under the lockup period (0.8% of outstanding shares) after one month. However, among the overseas institutions, 45% of the shares that are locked up is for the one month period (0.55 million shares or 0.4% of the outstanding shares). As investors look forward to this event, we believe that there could be more selling on this stock in the coming days. 
In our view, Kakao Pay still has ways to go before it reaches its bottom in share price. Over the next 6-12 months, we believe that Kakao Pay's share price could decline to our base/high case which is between 81,829 won and 103,366 won per share. At the current price of 153,500 won, this would represent a further downside risk of 33% to 47%. 


Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to clear the 400 barrier. Korea did meet our 400 PT for a fade back to the lows to re load.Kospi RSI bull divergence to mature on next downside attempt.SEC bear flag stands out (short).Compelling pair is long Korea and short India.

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to clear the 400 barrier. Korea did meet our 400 PT for a fade back to the lows to re load.Kospi RSI bull divergence to mature on next downside attempt.SEC bear flag stands out (short).Compelling pair is long Korea and short India.

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Asia: The Year in Shorts

There have been large increases and decreases in short interest on stocks across HK, Japan, Korea and Taiwan over the year. We look at the biggest...

Brian Freitas

KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

There are 6 adds and 7 deletes for the KOSPI200 at the Dec rebalance. Most of the changes were expected, but there are a couple of surprises. Kakao...

Brian Freitas

Korea Underdog Rotation Bet

Korea is a great rotation/laggard bet that was outlined on Oct 12 to work into a long and just met the add zone near the 385 support. A short...

Thomas Schroeder

SEC Bear Flag and Kospi Re Load Zone

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to...

Thomas Schroeder

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asia: The Year in Shorts

There have been large increases and decreases in short interest on stocks across HK, Japan, Korea and Taiwan over the year. We look at the biggest...

Brian Freitas

KOSPI200 Index Rebalance: Mostly Expected, Couple of Surprises

There are 6 adds and 7 deletes for the KOSPI200 at the Dec rebalance. Most of the changes were expected, but there are a couple of surprises. Kakao...

Brian Freitas

Korea Underdog Rotation Bet

Korea is a great rotation/laggard bet that was outlined on Oct 12 to work into a long and just met the add zone near the 385 support. A short...

Thomas Schroeder

Kakao Pay: End of the 1 Month Lock-Up Period & Where Is The Bottom for Share Price?

In this insight, we discuss the end of the one-month lock-up period for Kakao Pay (377300 KS) and where the bottom level prices could be for this...

Douglas Kim

SEC Bear Flag and Kospi Re Load Zone

Kospi and SEC bear flags point lower with SEC the more compelling short. Korea conviction to buy near 380/75 ahead of a bigger short squeeze to...

Thomas Schroeder