In today’s briefing:
- Korean Court Rules Against SM Entertainment From Issuing New Shares to Kakao
- KOSPI Size Indexes Migrants: Official Results & Price Performances So Far
- K-New Deal Official Constituent Changes: Evaluating Flow Trading Opportunities
Korean Court Rules Against SM Entertainment From Issuing New Shares to Kakao
- On 3 March, it was announced that a Korean court has ruled against SM Entertainment from issuing new shares and CB to Kakao Corp (035720 KS).
- HYBE’s tender offer period ended on 1 March. It is highly unlikely for HYBE to have successfully completed the tender offer reaching the entire 25% of outstanding shares.
- We maintain our position of a high probability of Kakao initiating its own tender offer of SM Entertainment shares in the coming weeks at about 140,000/150,000 won or more.
KOSPI Size Indexes Migrants: Official Results & Price Performances So Far
- Once again, the profit from Long Short basket trading has also been significant this time. The returns were quite juicy even if the period is shortened to From-February.
- The critical question now is whether the juice remains until the effective date. From what I can see, there is still some juice left.
- This is because it is generally observed that the flow trading window for this event tends to continue beyond the effective date.
K-New Deal Official Constituent Changes: Evaluating Flow Trading Opportunities
- Notable constituent changes are Posco Chemical (003670 KS), Douzone Bizon (012510 KS), Ecopro (086520 KS), Connectwave (119860 KS), SK Innovation (096770 KS), KMW (032500 KS), & Hanmi Science (008930 KS).
- Among these, Douzone Bizon (012510 KS) and KMW (032500 KS) are expected to receive the most significant flow impact (x ADTV) at the close of March 9th.
- Since the flow size is concentrated within a fairly right trading window, between 2 pm and the close on the 9th, the degree of price impact should be relatively higher.
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