In today’s briefing:
- Introducing KODEX Top 5 Plus ETF Rebalancing Event
- KOSPI 200 Ad Hoc Rebalance for Meritz Securities: DGB Financial Will Be Added
- ECM Weekly (20th Jan 23) – HK Brokers, Wuxi, IQIYI, Anycol, Adani, WM Mot, LG Ene, AIn, Oasis, Perta
- KCGI Formally Goes Activist on Osstem Implant
Introducing KODEX Top 5 Plus ETF Rebalancing Event
- At this point, one constituent change is expected, and LG Chem is expected to replace KT&G.
- The return of the equal-weighted long/short basket trade for the constituent changes in the past two years was recorded from 2.3% to 3.8%.
- Both LG Chem and KT&G are expected to have a significant rebalancing flow impact. It can be an event that brings a juicy day trading return.
KOSPI 200 Ad Hoc Rebalance for Meritz Securities: DGB Financial Will Be Added
- With JB Financial Group gone for Meritz Fire, the next one in line will enter KOSPI 200 in place of Meritz Securities. And the lucky one is DGB Financial.
- DGB can expect an inflow of 8.23x ADTV and will face a 2.8x ADTV in one day on March 31.
- Given the size of the preemptive flow that JB Financial is currently attracting, we should prepare for DBG to start receiving a similar level of price impact earlier than usual.
ECM Weekly (20th Jan 23) – HK Brokers, Wuxi, IQIYI, Anycol, Adani, WM Mot, LG Ene, AIn, Oasis, Perta
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Things are starting to pickup on the IPO front with the first somewhat sizeable US ADR filing done this week.
- Placements deal flow continued to stay strong this week, even as the performance didn’t.
KCGI Formally Goes Activist on Osstem Implant
- On 20 January, KCGI private equity fund formally started its corporate governance activist campaign on Osstem Implant (048260 KS).
- KCGI officially going activist on the company, its strong fundamentals and deep discount valuations suggest that Osstem Implant’s price is likely to outperform KOSPI by a wide margin in 2023.
- KCGI has demanded Kyoo-Ok Choi (Chairman of Osstem Implant) to resign.
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