In today’s briefing:
- KOSPI 200 December Rebalancing: Rule Change Clarifications & Possible Delay in Price Impact
- EQD | Decoding Last Week’s HSI Retreat: What Lies Ahead?
- Screen Holdings (7735 JP): FY Guidance Up, 2H Guidance Down
- Technical Analysis on DEERE & CO | October 27, 2023
KOSPI 200 December Rebalancing: Rule Change Clarifications & Possible Delay in Price Impact
- Although not explicitly outlined, it appears practical to interpret that we should filter out stocks that have entered a trading suspension among those receiving a WARNING designation.
- The dynamics of KOSPI 200 flow trading have become notably tumultuous due to the abrupt short selling ban and additional liquidity halts imposed on market makers in the futures market.
- The manifestation of price impact due to passive flows may be significantly delayed. So, we should prepare for this week’s announcement day setup targeting the delayed impact of passive flows.
EQD | Decoding Last Week’s HSI Retreat: What Lies Ahead?
- The HSI INDEX last week closed down (CC=-1), down for 3 months (almost 4), quite OVERSOLD and not in sync with the general “rally” (read: rebound) in other markets.
- LONG support for this week is between Q3 and Inner Fence levels: 16800-16300 area, but the current pattern behavior is not really encouraging LONG trades.
- Wait-And-See approach recommended before investment in HSI stocks, but if the index dives for the next 2 weeks it may be the right time to buy for a Christmas rally…
Screen Holdings (7735 JP): FY Guidance Up, 2H Guidance Down
- The share price has risen by more than 20% in the past month as 1H results beat guidance, FY guidance was raised and the yen weakened.
- The 2-for-1 stock split may also have attracted retail investors. But the new FY guidance implies lower 2H guidance.
- The outlook is for higher but volatile sales and profits. Valuations are reasonable but not compelling. Wait for a pullback.
Technical Analysis on DEERE & CO | October 27, 2023
- Deere & Company manufactures and distributes various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services.
- The Production and Precision Agriculture segment provides mid-size tractors, combines, cotton pickers and strippers, sugarcane harvesters, harvesting front-end equipment, sugarcane loaders, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers.
- The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment.
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