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.

Event-Driven

<ul>
<li>We can consider three types of dividend stocks, targeting the March 31 dividend base date: 1. 1Q fiscal year-ending dividends, 2. Interim (quarterly) dividends, 3. REITs regular dividends</li>
<li>The ex-dividend price corrections of fiscal year-ending dividend stocks have been pretty tight recently. In addition, the futures basis has not reached a desirable level either.</li>
<li>So, either outright dividend trading or dividend arb play does not have much trade opening. So, I'd consider setting up a long/short basket trading, by focusing on high DTV ones.</li>
</ul>


We can consider three types of dividend stocks, targeting the March 31 dividend base date: 1. 1Q fiscal year-ending dividends, 2. Interim (quarterly) dividends, 3. REITs regular dividends
The ex-dividend price corrections of fiscal year-ending dividend stocks have been pretty tight recently. In addition, the futures basis has not reached a desirable level either.
So, either outright dividend trading or dividend arb play does not have much trade opening. So, I'd consider setting up a long/short basket trading, by focusing on high DTV ones.


KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs

<ul>
<li>There are 71 interim dividend stocks on KOSPI and KOSDAQ. Of these, 9 stocks pay quarterly dividends: 7 KOSPI and 2 KOSDAQ.</li>
<li>All except POSCO and Shinhan Financial employ an equal quarterly split. As expected, SKT offers the highest quarterly dividend yield. At the last closing price, it is 1.55%.</li>
<li>Since the absolute yield level is tight, it may not be appropriate to consider a dividend arb play, except for SKT. Nevertheless, it may act as short-term price momentum.</li>
</ul>


There are 71 interim dividend stocks on KOSPI and KOSDAQ. Of these, 9 stocks pay quarterly dividends: 7 KOSPI and 2 KOSDAQ.
All except POSCO and Shinhan Financial employ an equal quarterly split. As expected, SKT offers the highest quarterly dividend yield. At the last closing price, it is 1.55%.
Since the absolute yield level is tight, it may not be appropriate to consider a dividend arb play, except for SKT. Nevertheless, it may act as short-term price momentum.


KOSPI/KOSDAQ Quarterly Dividend Stocks: DPS & Yield Estimations

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8 trillion won worth of KOSPI stocks.</li>
<li>This means that foreigners were net sellers of 0.8 trillion won worth of other KOSPI stocks (excluding the five major banking stocks). </li>
<li>The five major bank stocks in Korea currently have average dividend yield of 5.4%. DPS for the five major Korean banks increased by 70.9% YoY on average in 2021.</li>
</ul>


Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8 trillion won worth of KOSPI stocks.
This means that foreigners were net sellers of 0.8 trillion won worth of other KOSPI stocks (excluding the five major banking stocks). 
The five major bank stocks in Korea currently have average dividend yield of 5.4%. DPS for the five major Korean banks increased by 70.9% YoY on average in 2021.


Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Cross Asset Strategy

<ul>
<li>In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.</li>
<li>Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.</li>
<li>The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.</li>
</ul>


In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.
Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.
The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.


Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

Equity Capital Markets

Woori Financial Group  / Equity Capital Markets

<ul>
<li>Korea Deposit Insurance Corp (KDIC) is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won.</li>
<li>KDIC plans to sell 7.28 million to 21.84 million shares of Woori Financial Group in a block deal, which represents 1% to 3% of total shares of the company.</li>
<li>The block deal price range offered to the institutional investors is from 15,084 won to 15,550 won. We would take the deal even at little discount. </li>
</ul>


Korea Deposit Insurance Corp (KDIC) is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won.
KDIC plans to sell 7.28 million to 21.84 million shares of Woori Financial Group in a block deal, which represents 1% to 3% of total shares of the company.
The block deal price range offered to the institutional investors is from 15,084 won to 15,550 won. We would take the deal even at little discount. 


Block Deal Sale of Woori Financial Group by KDIC

South Korea

Shinhan Financial Group Co., Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.  The company's main businesses include banking, securities brokerage, trust banking, and assets management to individuals, businesses, and other financial institutions.

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Shinhan Financial Group Adr (SHG US)

KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs

This post offers the latest update on the expected dividends and dividend yields of the three types of end-1Q dividend stocks.

Sanghyun Park

KOSPI/KOSDAQ Quarterly Dividend Stocks: DPS & Yield Estimations

This post lists all 71 interim dividend stocks, of which 9 are quarterly dividend stocks. It then estimates DPS and dividend yield of these 9...

Sanghyun Park

Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8...

Douglas Kim

Block Deal Sale of Woori Financial Group by KDIC

KDIC is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won. We would take the...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs

This post offers the latest update on the expected dividends and dividend yields of the three types of end-1Q dividend stocks.

Sanghyun Park

KOSPI/KOSDAQ Quarterly Dividend Stocks: DPS & Yield Estimations

This post lists all 71 interim dividend stocks, of which 9 are quarterly dividend stocks. It then estimates DPS and dividend yield of these 9...

Sanghyun Park

Shinhan Financial Group: Chairman Buys Shares, Capital Flows Analysis, & Higher Dividends Likely

Foreigners net purchased 2.6 trillion won worth of five major Korean bank stocks from 8/26/2021 to 2/11/2022. Foreigners were net buyers of 1.8...

Douglas Kim

Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price...

Douglas Kim

Block Deal Sale of Woori Financial Group by KDIC

KDIC is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won. We would take the...

Douglas Kim