In today’s briefing:
- Matched Order Fraud in Korea: Reason Behind Eight Stocks Hit Massively
- KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)
Matched Order Fraud in Korea: Reason Behind Eight Stocks Hit Massively
- The local ghost hedge fund began to excessively invest in credit, which leveraged 2.5 to 3 times when the eight manipulated stocks started to increase rapidly in price.
- Then, the Financial Supervisory Service deemed this excessively-leveraged trading behavior as unusual, and news of an investigation into their activities broke out and triggered them to dump the shares.
- The key now is identifying in advance the stocks that will experience similar selling patterns. To do so, we need to prioritize selecting stocks with high-margin balances in recent times.
KOSDAQ150 Index Rebalance Preview: Adds Starting to Crack (After Huge Outperformance)
- With 3 trading days left in the review period for the June rebalance, we see 8 potential changes and 2 close adds for the KOSDAQ 150 Index (KOSDQ150 INDEX).
- There are two potential transfers from the KOSDAQ Market to KOSPI Market that could lead to more changes in May and/or June.
- Nearly all potential deletions are trading near their lows and short interest has been increasing on some of the stocks. That will be covered closer to implementation of the rebalance.
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