Daily Brief South Korea: Ecopro Co Ltd, SK Telecom, Korea Stock Exchange Kospi 200 Index and more

In today’s briefing:

KODEX Battery Rebalancing Results Out: From Today to Next Tuesday

As expected, Sungeel Hitech (365340) made it to the index. And C&I System (222080) and Wonik PNE (217820) were added, whereas Ecopro (086520) and Dongwha Enterprise (025900) were deleted.
Among the existing constituents, Samsung SDI (006400), Ecopro BM (247540), SK Innovation (096770), L&F (066970), and SKC (011790) are expected to have a relatively significant impact.
Looking at the last rebalancing, the impact/price correlation was most significant on Day 1. So, we should consider aiming for LONG/SHORT today for those with a high relative impact.

Targetable names on KOSPI for dividend arbitrage: SK Telecom (017670), Woori Financial (316140), SK Hynix (000660), KB Financial (105560), Korea Zinc (010130), and HMM (011200)
Samsung Electronics (005930)‘ basis does not reflect special dividends, even though speculations have not disappeared entirely.
As the current basis hasn’t widened to an entirely sufficient level, we need to target arb trade openings focusing on the above stocks a bit more aggressively.

KOSPI2 Index failed to break above the 200dma and has retreated
The index has now fallen back towards the 50dma and we see an short-term opportunity to play the upside
Use weekly options to play a short-term bounce and get the best risk-reward

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