In today’s briefing:
- Short Selling Full Resumption Schedule & Immediate Candidates Filtering
- LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
Short Selling Full Resumption Schedule & Immediate Candidates Filtering
- The local regulators will likely announce a full resumption of short selling within this month, and it will likely be implemented either next month or at the latest within April.
- Immediate candidates filtering on KOSPI (outside KOSPI 200): Huchems Fine Chemical, Hana Tour, Samyang Foods, and Douzone Bizon.
- Immediate candidates filtering on KOSDAQ (outside KOSDAQ 150): UniTest and Kolon Life Science.
LG Energy & LG Chem Passive Flow In/Out Estimations & Trading Considerations on February 9
- There is recently a growing view that the ETF operators (KODEX and TIGER) will conduct most of the rebalancing trading on February 9 to avoid excessive tracking errors.
- LG Chem will face an outflow of ₩0.38T (0.8% of SO and 1.37x ADTV). LG Energy would be 0.36x ADTV and 0.31% of SO, assuming a DTV of 2M shares.
- This is definitely a clear long/short setup opportunity: LG Energy LONG/LG Chem SHORT position. Alternatively, we can also consider approaching this event with Battery ETFs LONG/LG Chem Short setup.
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