In today’s briefing:
- KOSPI200 Index Rebalance: Se7en Changes
- KOSDAQ150 Index Rebalance Preview: A Dozen Changes in June
- KOSPI 200 Rebalancing: Noteworthy Names for Passive, Shorting, & Short Covering Flows
- KOSDAQ 150 Rebalancing Results: Passive Flows & Basket Trading Candidates
- Additions & Deletions to KOSPI 200 and Trading Strategies Post Announcement
- 3 Major Reasons Why Samsung and KOSPI Are Outperforming Other Global Peers & Country Equity Indices
KOSPI200 Index Rebalance: Se7en Changes
- There will be 7 additions and 7 deletions for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the June rebalance that will be implemented on 9 June.
- We got all 7 inclusions right and 5 of the 7 deletions right. The adds have 3-6 days ADV to buy, while the deletes have 4-12 days ADV to sell.
- Short interest on the deletions is a significant portion of the estimated passive selling and there could be short covering in the week leading up to implementation of the changes.
KOSDAQ150 Index Rebalance Preview: A Dozen Changes in June
- There are 12 inclusions and 12 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance to be implemented at the close on 9 June.
- Most of the inclusions were expected, but there are quite a few surprises among the deletions. The impact on the deletions will be higher than that on the inclusions.
- The adds have outperformed the deletes and there has been another leg up in the last couple of weeks. Expect the trend to continue till implementation week.
KOSPI 200 Rebalancing: Noteworthy Names for Passive, Shorting, & Short Covering Flows
- SD Biosensor leads the addition group with an estimated inflow of 4.59x ADTV. SK Discovery and Yungjin Pharmaceutical have the most substantial outflow at 7.23x and 6.07x ADTVs, respectively.
- For short-covering, CJ CGV stands out the most at this point. Its short interest is 4.57% of SO, and the short interest has increased the most of late.
- For short resumption, two names stand out: Meritz Fire and Hana Tour.
KOSDAQ 150 Rebalancing Results: Passive Flows & Basket Trading Candidates
- The additions are primarily in line with the predictions. But, the deletions contain many surprises. Webzen is the biggest surprise. Echo Marketing should also surprise a lot of fund trackers.
- Creas F&C will face the most substantial passive inflow at 4.08x ADTV, closely followed by Unitest. But factoring in liquidity, WYSIWYG Studios will likely draw the most attention
- JNTC will suffer the most among the deletions. However, Webzen will likely be in the limelight as its outflow is by far the largest at ₩8.6B, equivalent to 3.84x ADTV.
Additions & Deletions to KOSPI 200 and Trading Strategies Post Announcement
- Korea Exchange announced the additions and deletions to KOSPI200 today.
- There were no major surprises with regards to the additions and deletions.
- SK Discovery is a potential buy candidate and Hana Tour Service is a potential sell candidate post the announcement of KOSPI200 additions and deletions.
3 Major Reasons Why Samsung and KOSPI Are Outperforming Other Global Peers & Country Equity Indices
- One of the curious share price movements this year has been the outperformance of Samsung Electronics versus other global tech peers including Apple, TSMC, Intel, and Xiaomi.
- Three reasons why Samsung is outperforming global peers such as Apple and TSMC may due to a potential war in Taiwan, COVID lockdown in Shanghai, and new pro-business Korean President.
- Caution is warranted on playing long/short on Samsung, Apple, and TSMC in the coming months as their tides appear to be driven too much by the whims of global politics.
Before it’s here, it’s on Smartkarma
