Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200 rebalance in December 2024.</li>
<li>Stocks that are expected to be included in the KOSPI 200 index include Hyosung Heavy Industries, APR, Miwon Commercial, and OCI.</li>
<li>Stocks that have been discussed as the most likely exclusion candidates in the KOSPI 200 rebalance include Lotte Tour Development, MS Industrial, Young Poong, GC Holdings, and KG Donbu Steel. </li>
</ul>


In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200 rebalance in December 2024.
Stocks that are expected to be included in the KOSPI 200 index include Hyosung Heavy Industries, APR, Miwon Commercial, and OCI.
Stocks that have been discussed as the most likely exclusion candidates in the KOSPI 200 rebalance include Lotte Tour Development, MS Industrial, Young Poong, GC Holdings, and KG Donbu Steel. 


KOSPI 200 Rebalance in December 2024 Highlighted by Locals

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).</li>
<li>In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.</li>
<li>We expect up to five ADDs and six DELs for the KOSPI 200 Index during this rebal event based on the latest available data. Small increase vs two weeks ago.</li>
</ul>


KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in December 2024.
We expect up to five ADDs and six DELs for the KOSPI 200 Index during this rebal event based on the latest available data. Small increase vs two weeks ago.


Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

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

Hyosung Heavy Industries Corp / Event-Driven

<ul>
<li>85% of the way through the review period, there could be 4 adds and 5 deletes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in December.</li>
<li>The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.</li>
<li>The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.</li>
</ul>


85% of the way through the review period, there could be 4 adds and 5 deletes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
The impact on the potential inclusions ranges from 1.4-17 days of ADV while the impact on the potential deletions varies from 4-8 days of ADV.
The potential adds outperformed the potential deletes early in the review period before giving up all the gains over the following months.


KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

<ul>
<li>Around a third of the way though the review period, there could be 4 changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> at the December rebalance.</li>
<li>The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on the potential deletions varies from 2.5-16 days of ADV.</li>
<li>The potential adds have outperformed the potential deletions over the last few months and there could be more to go with short selling banned.</li>
</ul>


Around a third of the way though the review period, there could be 4 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the December rebalance.
The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on the potential deletions varies from 2.5-16 days of ADV.
The potential adds have outperformed the potential deletions over the last few months and there could be more to go with short selling banned.


KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

<ul>
<li>In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.</li>
<li>The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.</li>
<li>All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.</li>
</ul>


In a recent discussion with a client, one of the questions that was raised was regarding the impact the local investors are having on the corporate governance reforms in Korea.
The number of local investors in the Korean stock market has jumped in the past few years from 5.3 million in 2017 to 14.4 million in 2022.
All in all, I think Korea is about 3-5 years behind Japan in various corporate governance reforms. So it has a lot of catching up to do.


Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

South Korea

OCI Company Ltd. produces and sells chemical products. The Company manufactures basic chemicals, petrochemicals, carbon materials, rechargeable battery materials, and other products. OCI markets its products worldwide.

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OCI Co (456040 KS)

KOSPI 200 Rebalance in December 2024 Highlighted by Locals

In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200...

Douglas Kim

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

We have added one each to the ADDs and DELs list for the December 2024 rebal of KOSPI200. I still like Dongwon Industries. That trade is up 4+% in...

Travis Lundy

KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

There could be 4 adds, 5 deletes for the KOSPI200 in December. Passive impact ranges from 1.4-17 days of ADV. The adds outperformed the deletes...

Brian Freitas

KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

There could be 4 changes for the KOSPI200 in December. The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on...

Brian Freitas

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KOSPI 200 Rebalance in December 2024 Highlighted by Locals

In this insight, we discuss stocks that are highlighted in the local media as potential inclusion and exclusion candidates in the KOSPI 200...

Douglas Kim

Quiddity Leaderboard KOSPI 200 Dec 24: Up to 5 ADDs & 6 DELs Possible

We have added one each to the ADDs and DELs list for the December 2024 rebal of KOSPI200. I still like Dongwon Industries. That trade is up 4+% in...

Travis Lundy

KOSPI200 Index Rebalance Preview: 4 Adds, 5 Deletes Likely in December

There could be 4 adds, 5 deletes for the KOSPI200 in December. Passive impact ranges from 1.4-17 days of ADV. The adds outperformed the deletes...

Brian Freitas

KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

There could be 4 changes for the KOSPI200 in December. The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on...

Brian Freitas

Locals Driving Corporate Reforms and 10 Korean Companies Recently Announcing Share Cancellations

On 17 April, Celltrion Inc announced that it will buyback shares worth 75 billion won. Including 75 billion won of share repurchase last month,...

Douglas Kim