In today’s briefing:
- KOSPI200 June Index Rebalance Preview: High Probability Adds/Deletes
- STAR50 Index Rebalance Preview (March 2022): What Will The Index Committee Do?
- Porton Pharma Solutions (300363.CH) – Not Easy to Get into the First Tier
KOSPI200 June Index Rebalance Preview: High Probability Adds/Deletes
- The review period for the June rebalance of the KOSPI2 INDEX ends 30 April. The KRX will announce the changes in May with implementation at the close on 9 June.
- LG Energy Solution (LGENERGY KS) could get Fast Entry to the KOSPI200 Index in March. Hyundai Engineering Co Ltd (HEC KS) needs a price jump to get Fast Entry.
- We see 6 potential changes to the KOSPI200 in June; most of these are high probability. The potential adds are already outperforming the potential deletes – there should be more.
STAR50 Index Rebalance Preview (March 2022): What Will The Index Committee Do?
- The main question, for yet another rebalance, is whether the index committee chooses a 6 month minimum listing history or increases it to 12 months in line with the methodology.
- That decision will result in either 4 or 5 changes at the rebalance. The deletions remain the same, while there is only 1 inclusion common across both lists.
- There is a fair bit to trade on the potential inclusions and exclusions and we expect the inclusions to outperform the deletions over the next couple of months.
Porton Pharma Solutions (300363.CH) – Not Easy to Get into the First Tier
- Porton made a successful turnaround and the CGT business layout is also in the right direction. The US$217 million new order would improve the certainties of its 2022 performance.
- The concerns on potential deterioration of international relations and the broken logic in CXO sector also apply to Porton Pharma Solutions (300363 CH), which should be aware of by investors.
- So, there is a long way to go for Porton to truly get into the first tier. It may not be a good buying point currently considering the high valuation.
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