In today’s briefing:
- MSCI Korea Index Rebalance: Kakao Pay Included
- KOSPI Size Index Migration: Names to Trade as We Are 30D Towards Effective
MSCI Korea Index Rebalance: Kakao Pay Included
- MSCI announced its MSCI Korea index rebalance on 10 February. Kakao Pay (377300 KS) was the only company to be included in the MSCI Korea index.
- There were also nine Korean companies included in MSCI Small Cap index including Osstem Implant, DearU, and ISC Co.
- Hanwha Aerospace (012450 KS) and Ecopro Co Ltd (086520 KS) are higher probability potential candidates for inclusion in MSCI Korea Index rebalance in May.
KOSPI Size Index Migration: Names to Trade as We Are 30D Towards Effective
- Amorepacific Group is more likely to remain in LargeCap due to its share price surge earlier this year. Instead, Hyundai Autoever will likely face a large→mid migration.
- Of Small→Mid migrants. Sebang and Kum Yang deserve attention, as they will rank high in the Mid due to the rapid market cap growth over the past six months.
- YTD performance seems to have a higher correlation with individual sector performance than causality with this event. So, there is still a circumstantial probability that justifies the trade.
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