Daily Brief South Korea: SK Biopharmaceuticals , Kangwon Land, Korea Stock Exchange KOSPI 200 and more

In today’s briefing:

Key Flow Trading Opportunities After KRX Suddenly Added POSCO Holdings to the BBIG Battery Mix
Kangwon Land: Regulatory Improvements to Result in Higher Earnings and Valuation Multiples Expansion
EQD | KOSPI 200 OVERSOLD, It Could Bounce This Week

Key Flow Trading Opportunities After KRX Suddenly Added POSCO Holdings to the BBIG Battery Mix

Got surprised by KRX adding POSCO Holdings to the Battery Index. Normally predictable rebalancing went off-script with this unexpected move.
POSCO Holdings, not Posco Future M, replaced Ecopro BM. Plus, Alteogen Inc is replacing SK Biopharmaceuticals in the BBIG, driving notable flow.
Consider a day trading long POSCO Holdings and short Ecopro BM. Also, a long-short futures basket could be worth exploring for names with big passive flows.

Kangwon Land has received approval to expand its total casino area from 14,512 square metres previously to 20,260 square metres (up 40%).
The betting limits in the foreign players only zone will increase significantly from 300,000 won (about US$225) to 300 million won (about US$225,000). This represents a 1000x increase.
We would argue that there is a high probability of Kangwon Land benefiting not just from higher sales and profits but also from higher valuation multiples.

The KOSPI 200 has corrected for 3 weeks in a row, reaching a low at 340.08 last week. It is WEEKLY OVERSOLD, according to our models.
In a previous insight we theorized the index could go higher (but only for 1 week), however the rally never materialized. From there it went downhill, now it can bounce.
The support area between the last Close and 320 offers strong support, according to our WEEKLY pattern models.

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