In today’s briefing:
- An Optimal Way to Sourcing and Screening Data for Low PBR Theme Stocks in Korea
- Quiddity Primer for KOSPI 200 Index Rebal Events (2024)
- KOSPI200 Index Adhoc Rebalance: Potential Replacements for SsangyongC&E
- Rule Changes to Swap Ratio Calculations for Merger Swaps in Korea
- A First Major Class Action Lawsuit Against KT&G’s Directors by FCP + KT&G’s Results Analysis in 2023
- EQD | KOSPI 200 Rally: WEEKLY Resistance Levels
An Optimal Way to Sourcing and Screening Data for Low PBR Theme Stocks in Korea
- We can use KRX to access PER, PBR, and dividend yield. However, except for PER, the data, being based on the most recent information, limits its usefulness for proactive positions.
- So, we should look into FnGuide, which aggregates and provides exclusive consensus data. This website also requires payment for access.
- However, FnGuide provides some data for free, including PBR. Therefore, we can make use of this within the scope of its free offerings.
Quiddity Primer for KOSPI 200 Index Rebal Events (2024)
- KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
- KOSPI 200 is also used as the underlying index for various financial products such as ETPs, ELS, index funds, and futures/options.
- In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of KOSPI 200 index rebalance baskets.
KOSPI200 Index Adhoc Rebalance: Potential Replacements for SsangyongC&E
- Hahn & Co hold 79.9% of Ssangyong Cement Industrial (003410 KS) and have made a tender offer to acquire the remaining 20.1% at KRW 7,000/share.
- Ssangyong Cement Industrial (003410 KS) should be deleted from the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) once Hahn & Co acquire 90% of the company.
- Aekyung Chemical (161000 KS) is a potential addition to the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) but inclusion is dependent on Hahn & Co reaching 90% of shares out.
Rule Changes to Swap Ratio Calculations for Merger Swaps in Korea
- The Financial Services Commission plans to delegate merger swap ratio determination to corporate autonomy. Initially, only mergers between non-affiliated companies will be affected, with potential extension to affiliate mergers later.
- The Financial Services Commission aims to start the legislative process in mid-February and complete the amendment by the third quarter of this year.
- This change will enhance trading dynamics by decreasing the likelihood of prices aligning with the ratio just before merger announcements due to pre-information leakage.
A First Major Class Action Lawsuit Against KT&G’s Directors by FCP + KT&G’s Results Analysis in 2023
- One of the biggest news facing KT&G this year as been a class action lawsuit against KT&G’s directors by Flashlight Capital Partners.
- KT&G announced that it will cancel 3.5 million shares (about 315 billion won) on 16 February, which represent 2.6% of its outstanding shares and 16.7% of treasury shares.
- One of the major reasons why we remain positive on KT&G is that there is a relatively high probability of the company announcing cigarette price hikes in 2H 2024.
EQD | KOSPI 200 Rally: WEEKLY Resistance Levels
- The KOSPI 200 INDEX last week displayed and impressive bounce, maybe too impressive, too quick, too fast.
- A short-selling ban is in place until June 2024 for this market, but that does not mean it cannot pull back: according to our models the KOSPI 200 INDEX is OVERBOUGHT.
- We expect a pullback next week, unless the index closes this week down, in that case SHORT resistance levels will be reset.
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