Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> is falling for the second week in a row, but the pullback is modest so far.</li>
<li>This pullback is probably just another occasion to buy at better prices, however some more pullback may be in store between here and the end of the week.</li>
<li>The support area where we think a LONG trade has good probability of success based on our models is between 356 and 350.</li>
</ul>


The KOSPI 200 INDEX is falling for the second week in a row, but the pullback is modest so far.
This pullback is probably just another occasion to buy at better prices, however some more pullback may be in store between here and the end of the week.
The support area where we think a LONG trade has good probability of success based on our models is between 356 and 350.


EQD | KOSPI 200 WEEKLY Bottom May Be Behind the Corner

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.

<ul>
<li>Government sees foreign investors as key for Corporate Value-Up success, considering reinstating short selling.</li>
<li>Planning to expand short selling beyond 350 stocks, but anticipating pushback from retail investors, likely capping additional stocks around 100.</li>
<li>The head of the Financial Supervisory Service will formally disclose these plans during the upcoming short selling conference scheduled for March 13th.</li>
</ul>


Government sees foreign investors as key for Corporate Value-Up success, considering reinstating short selling.
Planning to expand short selling beyond 350 stocks, but anticipating pushback from retail investors, likely capping additional stocks around 100.
The head of the Financial Supervisory Service will formally disclose these plans during the upcoming short selling conference scheduled for March 13th.


Clearing up Confusion About Bringing Back Short Selling in Korea

<ul>
<li>Insiders must disclose transaction details, complete deals within 30 days, limit deviations to 30%, and submit disclosures 30 days before transactions.</li>
<li>Financial investors, including institutional ones, are exempt. This encompasses local pension funds (including NPS) and foreign financial investors. Deals under 1% of total shares and less than ₩5B are exempt.</li>
<li>Confirmation of the timeline indicates many block deals before July. We should hunt potential deals for proactive setups. Also, we should monitor basis widening in futures due to short-selling ban.</li>
</ul>


Insiders must disclose transaction details, complete deals within 30 days, limit deviations to 30%, and submit disclosures 30 days before transactions.
Financial investors, including institutional ones, are exempt. This encompasses local pension funds (including NPS) and foreign financial investors. Deals under 1% of total shares and less than ₩5B are exempt.
Confirmation of the timeline indicates many block deals before July. We should hunt potential deals for proactive setups. Also, we should monitor basis widening in futures due to short-selling ban.


Confirmed: Conditions & Schedule of Block Deals Pre-Disclosure Rules in Korea

<ul>
<li>The rollout of the Korea Value-Up Index has encountered a minor delay. Completion of the index is slated for 3Q, with ETFs scheduled for release in 4Q.</li>
<li>The government will encourage the National Pension Service to utilize it as a benchmark.</li>
<li>Dividend payout ratio, dividend yield, PER, and cash flow will be included as screening factors for this index, in addition to the already known factors of PBR and ROE.</li>
</ul>


The rollout of the Korea Value-Up Index has encountered a minor delay. Completion of the index is slated for 3Q, with ETFs scheduled for release in 4Q.
The government will encourage the National Pension Service to utilize it as a benchmark.
Dividend payout ratio, dividend yield, PER, and cash flow will be included as screening factors for this index, in addition to the already known factors of PBR and ROE.


Details of Korea Value-Up Initiatives & Index, Announced This Morning

<ul>
<li>The <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200 INDEX</a> has been rallying since January 2022, roughly up +22.5%, the rally can continue, but soon there could be a pullback, possibly this coming week.</li>
<li>If the index falls from its current highs, where are the best support levels to go LONG again?</li>
<li>The price area between 355 and 345 is where the index could find support and resume the uptrend.</li>
</ul>


The KOSPI 200 INDEX has been rallying since January 2022, roughly up +22.5%, the rally can continue, but soon there could be a pullback, possibly this coming week.
If the index falls from its current highs, where are the best support levels to go LONG again?
The price area between 355 and 345 is where the index could find support and resume the uptrend.


EQD | Where to BUY the KOSPI On The Upcoming Pullback

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)

EQD | KOSPI 200 WEEKLY Bottom May Be Behind the Corner

The KOSPI 200 INDEX is falling for the second week in a row, a modest pullback that may present a buying opportunity in the support price area...

Nico Rosti

Clearing up Confusion About Bringing Back Short Selling in Korea

There's been a bit of a mix-up about bringing back short selling in Korea. This post is here to clear things up and explain what's really happening...

Sanghyun Park

Confirmed: Conditions & Schedule of Block Deals Pre-Disclosure Rules in Korea

This post details specific conditions and the implementation schedule for Korea's block deals pre-disclosure rules, officially confirmed by the...

Sanghyun Park

Details of Korea Value-Up Initiatives & Index, Announced This Morning

This post details the official announcement of the Korean government this morning regarding the Korea Value-Up initiatives and index.

Sanghyun Park

EQD | Where to BUY the KOSPI On The Upcoming Pullback

The KOSPI 200's rally could experience a pullback soon, maybe this coming week. The best support levels to go LONG during the pullback are between...

Nico Rosti

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EQD | KOSPI 200 WEEKLY Bottom May Be Behind the Corner

​The KOSPI 200 INDEX is falling for the second week in a row, a modest pullback that may present a buying opportunity in the support price area...

Nico Rosti

Clearing up Confusion About Bringing Back Short Selling in Korea

There's been a bit of a mix-up about bringing back short selling in Korea. This post is here to clear things up and explain what's really happening...

Sanghyun Park

Confirmed: Conditions & Schedule of Block Deals Pre-Disclosure Rules in Korea

This post details specific conditions and the implementation schedule for Korea's block deals pre-disclosure rules, officially confirmed by the...

Sanghyun Park

Details of Korea Value-Up Initiatives & Index, Announced This Morning

This post details the official announcement of the Korean government this morning regarding the Korea Value-Up initiatives and index.

Sanghyun Park

EQD | Where to BUY the KOSPI On The Upcoming Pullback

The ​KOSPI 200's rally could experience a pullback soon, maybe this coming week. The best support levels to go LONG during the pullback are between...

Nico Rosti

The KOSPI 200 INDEX is falling for the second week in a row, a modest pullback that may present a buying opportunity in the support price area...

The KOSPI 200's rally could experience a pullback soon, maybe this coming week. The best support levels to go LONG during the pullback are between...