In today’s briefing:
- CFD Liquidation in Korea: Posco DX, Celltrion Siblings, and Potential Next Targets
- Government Pressures Korean Instant Noodles & Flour Makers to Lower Prices
CFD Liquidation in Korea: Posco DX, Celltrion Siblings, and Potential Next Targets
- Yesterday and today, there have been observed cases in Korea that are suspected to be caused by a sudden drop in stock prices due to CFD liquidation trading.
- Yesterday it was Celltrion with its two siblings, and today it is Posco DX. I have found candidates that may have similar stock price movements.
- These candidates experienced a notable increase in their stock prices from late March to mid-April, and they have a relatively high margin transaction ratio.
Government Pressures Korean Instant Noodles & Flour Makers to Lower Prices
- In the past week, several leading Korean instant noodle makers including Nongshim, Samyang Foods, and Ottogi announced that they will be reducing instant noodle and snack prices starting July.
- This government pressure to lower instant noodle and snack prices are likely to negatively impact companies including Nongshim, Samyang Foods, and Ottogi Corp.
- We believe the share prices of the three major instant noodle makers including Nongshim, Samyang Foods, and Ottogi could face further underperformance relative to KOSPI in the next 3-6 months.
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