In today’s briefing:
- KOSPI 200 Up/Down Weights: Official Results & Passive Impacts on T-1 Effective
- TIGER Top 10 Rebalancing: Four Names to Trade on T-1 Effective
KOSPI 200 Up/Down Weights: Official Results & Passive Impacts on T-1 Effective
- Names with a significant impact: KT (030200), Shinhan Financial (055550), Korean Air (003490), LG Energy (373220), Dongwon Industries (006040), Lotte Fine Chemical (004000), Meritz Fire (000060), & Mirae Asset (006800)
- Limiting the target size of our flow trading to only the fund size that directly mirrors it (₩17.8T) on T-1 Effective will increase our winning rate.
- Lately, local pensions have been seen as rather taking advantage of flow trading in index rebalancing events, so I also recommend keeping the trading window fairly tight.
TIGER Top 10 Rebalancing: Four Names to Trade on T-1 Effective
- Kakao managed to stay out of the relegation zone. Instead, Kia was pushed to the borderline. But POSCO failed to up its float rate, so Kia stayed in.
- Besides that, LG Energy Solution and Celltrion made it to the index, replacing KB Financial and Shinhan Financial.
- These passive flows appears to be of sufficient magnitude to cause a substantial price impact on T-1 Effectiveness. But it should also be approached with a fairly short window.
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