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 85% of the review period complete, we see 10 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> at the December rebalance.</li>
<li>There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.</li>
<li>The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.</li>
</ul>


With 85% of the review period complete, we see 10 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the December rebalance.
There are a few stocks that are close adds/deletes on market cap and liquidity and could make it into the final list depending on price/volume over the next few weeks.
The potential adds have outperformed the potential deletes over the last month and pre-positioning could continue till the end of the review period.


KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

<ul>
<li>One third of the way through the review period for the June rebalance, we see 14 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 6.29% and the impact on the expected deletions is a lot higher than the impact on the expected inclusions.</li>
<li>The potential inclusions have outperformed the potential deletions and are starting to lose some ground now. The potential inclusions are not short sell eligible and could move higher again.</li>
</ul>


One third of the way through the review period for the June rebalance, we see 14 potential changes to the KOSDAQ 150 Index (KOSDQ150 INDEX).
One-Way turnover is estimated at 6.29% and the impact on the expected deletions is a lot higher than the impact on the expected inclusions.
The potential inclusions have outperformed the potential deletions and are starting to lose some ground now. The potential inclusions are not short sell eligible and could move higher again.


KOSDAQ150 Index Rebalance Preview (June 2022): Lots of Changes Early in the Review Period

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<ul>
<li>K Auction is getting ready to complete its IPO on the KOSDAQ exchange in January 2022. K Auction is the second largest art auction platform company in Korea. </li>
<li>K Auction's sales and operating profit surged by 69% YoY and 586% YoY in 1Q - 3Q 2021. It had a 42% share in the Korean art market in 1H21.</li>
<li>The valuations appear reasonable with large IPO discount. Given the strong demand for art market/NFT combined with strong financials, there is likely to be solid retail interest in this IPO. </li>
</ul>


K Auction is getting ready to complete its IPO on the KOSDAQ exchange in January 2022. K Auction is the second largest art auction platform company in Korea. 
K Auction's sales and operating profit surged by 69% YoY and 586% YoY in 1Q - 3Q 2021. It had a 42% share in the Korean art market in 1H21.
The valuations appear reasonable with large IPO discount. Given the strong demand for art market/NFT combined with strong financials, there is likely to be solid retail interest in this IPO. 


<div class="content-highlight"><p>In the past few days, <a href="https://www.smartkarma.com/entities/hybe-co-ltd" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">HYBE (352820 KS)</a> announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.</p></div><ul>
<li>HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. </li>
<li>As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.</li>
</ul><div class="content-highlight"><p><strong>Metaverse &amp; NFT - A Re-Rating Factor for HYBE? </strong>The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.</p></div>

In the past few days, HYBE (352820 KS) announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token). Dunamu will invest 700 billion won in HYBE through a third-party allocation and paid-in capital increase. HYBE will also invest 500 billion won in Dunamu through a third-party allocation and paid-in capital increase.
HYBE will issue 2.3 million new shares (5.9% of current outstanding shares of 39 million) at a purchase price of 304,008 won in this transaction. HYBE currently has a stock price of 383,500 won so the purchase price is about 21% lower than the current price. 
As a result of this transaction, HYBE will have a 2.48% stake in Dunamu, which would imply a value of 20.2 trillion won ($17.2 billion) for Dunamu. The date of this share acquisition completion will be on 24 November.
Metaverse &amp; NFT - A Re-Rating Factor for HYBE? The metaverse and NFT have taken the world by storm in 2021. One could argue that the extremely strong demand for NFT and metaverse in 2021 have been one of the key reasons for the re-rating of HYBE this year. Certainly, HYBE faces the risk associated with its high dependence on the BTS. However, it has been able to partly diffuse this risk with the acquisition of Ithaca Holdings in April 2021. Now, with the extraordinary demand for NTF and metaverse related contents and services, HYBE is well positioned to capitalize these trends.

A Equity-Based Partnership Between HYBE and Dunamu & The Upcoming Launch of BTS NFT

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Thematic (Sector/Industry)

<p>As I said in my earlier comment, <a href="https://www.smartkarma.com/entities/22932" target="_blank" data-smartkarma-citation="entities:22932:1">Samsung Biologics Co., Ltd (207940 KS)</a> seems to be benefiting a lot from its inclusion in KOSPI200 index. Perhaps because of this, I am receiving some inquiries about who will be included and excluded in the upcoming reshuffle of KOSPI200 and KOSDAQ150. The decisions were already made and confirmed on May 16, and the changes will be officially made on June 9. But I guess many of us here on Smartkarma community wants a "concise" summary of this reshuffle. So, I…</p>

As I said in my earlier comment, Samsung Biologics Co., Ltd (207940 KS) seems to be benefiting a lot from its inclusion in KOSPI200 index. Perhaps because of this, I am receiving some inquiries about who will be included and excluded in the upcoming reshuffle of KOSPI200 and KOSDAQ150. The decisions were already made and confirmed on May 16, and the changes will be officially made on June 9. But I guess many of us here on Smartkarma community wants a "concise" summary of this reshuffle. So, I…

Summary of KOSPI200 & KOSDAQ150 Upcoming Reshuffle

South Korea

Seoul Auction Co., Ltd. operates auctions to trade art works of paint. The Company has galleries over the country, and purchases and sells various art works. Seoul Auction also makes loan for auction trading.

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Seoul Auction (063170 KS)

KOSDAQ150 Index Rebalance Preview: Moving in the Right Direction

There could be 10 changes to the KOSDAQ150 Index in December. There are a few stocks that are close adds/deletes. The potential adds have...

Brian Freitas

KOSDAQ150 Index Rebalance Preview (June 2022): Lots of Changes Early in the Review Period

A third of the way through the review period, we see 14 potential changes to the KOSDAQ150 Index at the June rebalance. A reversal in performance...

Brian Freitas

K Auction IPO Preview

K Auction is getting ready to complete its IPO in January 2022. Given the strong demand for art market/NFT combined with strong financials, there...

Douglas Kim

A Equity-Based Partnership Between HYBE and Dunamu & The Upcoming Launch of BTS NFT

In the past few days, HYBE announced an equity based partnership with Dunamu as well as the launch of the BTS NFT (non-fungible token).

Douglas Kim

Summary of KOSPI200 & KOSDAQ150 Upcoming Reshuffle

As I said in my earlier comment, Samsung Biologics Co., Ltd (207940 KS) seems to be benefiting a lot from its inclusion in KOSPI200 index. Perhaps...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

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