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

Event-Driven

<ul>
<li>With 3 trading days left in the review period for the June rebalance, we see 8 potential changes and 2 close adds 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>. </li>
<li>There are two potential transfers from the KOSDAQ Market to KOSPI Market that could lead to more changes in May and/or June.</li>
<li>Nearly all potential deletions are trading near their lows and short interest has been increasing on some of the stocks. That will be covered closer to implementation of the rebalance.</li>
</ul>


With 3 trading days left in the review period for the June rebalance, we see 8 potential changes and 2 close adds for the KOSDAQ 150 Index (KOSDQ150 INDEX). 
There are two potential transfers from the KOSDAQ Market to KOSPI Market that could lead to more changes in May and/or June.
Nearly all potential deletions are trading near their lows and short interest has been increasing on some of the stocks. That will be covered closer to implementation of the rebalance.


KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)

<ul>
<li>End December was the end of the review cutoff for a lot of indices that will rebalance within the next couple of months.</li>
<li>
<a href="https://www.smartkarma.com/entities/pexa-group-ltd" target="_blank" data-smartkarma-citation="entities:34716:1" rel="noopener">PEXA Group (PXA AU)</a> replaces <a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a> in the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> at the close on 12 January.</li>
<li>There were big outflows from Hong Kong and China focused ETFs led by <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index-etf" target="_blank" data-smartkarma-citation="entities:25:1" rel="noopener">Hang Seng H Share Index ETF (2828 HK)</a> and <a href="https://www.smartkarma.com/entities/tracker-fund-of-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:29257:1" rel="noopener">Tracker Fund of Hong Kong Ltd (2800 HK)</a>.</li>
</ul>


End December was the end of the review cutoff for a lot of indices that will rebalance within the next couple of months.

PEXA Group (PXA AU) replaces Pendal Group (PDL AU) in the S&amp;P/ASX 200 (AS51 INDEX) at the close on 12 January.
There were big outflows from Hong Kong and China focused ETFs led by Hang Seng H Share Index ETF (2828 HK) and Tracker Fund of Hong Kong Ltd (2800 HK).


Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, HSI, HSCI, KS200, KQ150, CSI300, SENSEX, LQ45, PSEi

<ul>
<li>One third of the way through the review period for the June rebalance, we see 9 potential changes to 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>. </li>
<li>One way turnover is estimated at 3.3% and the impact on the expected deletions is a lot higher than the impact on the expected inclusions.</li>
<li>The potential adds have massively outperformed the potential deletes over the last year. We'd wait for a reversal before entering a trade here - worth monitoring.</li>
</ul>


One third of the way through the review period for the June rebalance, we see 9 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX). 
One way turnover is estimated at 3.3% and the impact on the expected deletions is a lot higher than the impact on the expected inclusions.
The potential adds have massively outperformed the potential deletes over the last year. We'd wait for a reversal before entering a trade here - worth monitoring.


KOSDAQ150 Index Rebalance Preview (June): Changes Keep Rolling In

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul><li><div class="content-highlight">In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four months. Many of these stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an <em>"alpha generating"</em> catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.</div></li></ul><ul><li><p>In terms of size, the share buyback announcement by Samsung…</p></li></ul>

In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four months. Many of these stocks that have been buying back their shares have been outperforming the market in recent weeks. Share buybacks continue to be an "alpha generating" catalyst in the Korean stock market. Time and again, companies that buyback stocks in Korea tend to outperform the market.In terms of size, the share buyback announcement by Samsung…

Alpha Generation from Share Buybacks in Korea (August - November 2017)

Equity Capital Markets

<ul>
<li>
<strong>We recommend investors to pass on the Motrex IPO deal.</strong> The IPO price range is 31,200 won to 38,300 won. At the low IPO price range, this would suggest market cap of 174 billion won. A key comparison of Motrex is <a href="https://www.smartkarma.com/entities/6089" target="_blank" data-smartkarma-citation="entities:6089:1">Hyundai Mobis Co Ltd (012330 KS)</a>, which is trading at 8x P/E (2017). When you could buy Hyundai Mobis at 8x P/E, why would investors want to buy Motrex at more than 8x P/E?</li>
<li>Despite the rosy industry growth projections for navigation, audio system, and various in-vehicle infotainment (IVI)…</li>
</ul>



We recommend investors to pass on the Motrex IPO deal. The IPO price range is 31,200 won to 38,300 won. At the low IPO price range, this would suggest market cap of 174 billion won. A key comparison of Motrex is Hyundai Mobis Co Ltd (012330 KS), which is trading at 8x P/E (2017). When you could buy Hyundai Mobis at 8x P/E, why would investors want to buy Motrex at more than 8x P/E?
Despite the rosy industry growth projections for navigation, audio system, and various in-vehicle infotainment (IVI)…


South Korea

Motrex Co.,Ltd manufactures automobile electronic equipment. The Company produces and sells automotive parts, automotive audio, automotive navigation, remote control devices, and other products. Motrex markets its products worldwide.

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Motrex Co.,Ltd (118990 KS)

KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)

There could be 8 changes at the regular rebalance plus a couple of ad hoc changes. The potential adds ran up a lot and have started to head lower....

Brian Freitas

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, HSI, HSCI, KS200, KQ150, CSI300, SENSEX, LQ45, PSEi

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

KOSDAQ150 Index Rebalance Preview (June): Changes Keep Rolling In

Early in the review period, we see 9 potential changes for the KOSDAQ150 in June. The potential adds have outperformed the potential deletes by a...

Brian Freitas

Motrex IPO Preview - Valuation Analysis

We recommend investors to pass on the Motrex IPO deal. The IPO price range is 31,200 won to 38,300 won. At the low IPO price range, this would...

Douglas Kim

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)

There could be 8 changes at the regular rebalance plus a couple of ad hoc changes. The potential adds ran up a lot and have started to head lower....

Brian Freitas

Index Rebalance & ETF Flow Recap: HSCEI, HSTECH, HSI, HSCI, KS200, KQ150, CSI300, SENSEX, LQ45, PSEi

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

KOSDAQ150 Index Rebalance Preview (June): Changes Keep Rolling In

Early in the review period, we see 9 potential changes for the KOSDAQ150 in June. The potential adds have outperformed the potential deletes by a...

Brian Freitas

Alpha Generation from Share Buybacks in Korea (August - November 2017)

In this report, we have identified more than 40 stocks in the Korean stock market that have announced share buyback programs in the past four...

Douglas Kim

Motrex IPO Preview - Valuation Analysis

We recommend investors to pass on the Motrex IPO deal. The IPO price range is 31,200 won to 38,300 won. At the low IPO price range, this would...

Douglas Kim