Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Earnings Surprise KOSPI Stocks Potentially Hedging Against Inflation for Basket & Pairs Trades

Cross Asset Strategy

<p>In this insight, we discuss the winners and losers of the top 200 listed entities (market cap based) in KOSPI since a key inflection point date (January 25, 2021). Since this date, KOSPI is down 1.7%. Korea is not alone. Since the last week of January/first week of February, major global markets are relatively flat. Also, remember that the last week of January was a key inflection week with the Gamestop debacle grabbing major market headlines. In addition to highlighting the major winners and losers, we also discuss the changes in the foreign ownership of these 200 entities during this period (1/25/2021 - 5/14/2021). </p><div class="content-highlight"><p><strong>We believe that the winners (such as materials, commodities, telecom, and cosmetics) so far in KOSPI from the key infection date (Jan 25, 2021), could continue to maintain their market leading status for the next couple of months. Nonetheless, there could be some big data coming out of the markets in August to October which could warrant out of consensus views on inflation at which point there could be some big changes to the trending stocks. </strong></p></div>

In this insight, we discuss the winners and losers of the top 200 listed entities (market cap based) in KOSPI since a key inflection point date (January 25, 2021). Since this date, KOSPI is down 1.7%. Korea is not alone. Since the last week of January/first week of February, major global markets are relatively flat. Also, remember that the last week of January was a key inflection week with the Gamestop debacle grabbing major market headlines. In addition to highlighting the major winners and losers, we also discuss the changes in the foreign ownership of these 200 entities during this period (1/25/2021 - 5/14/2021). We believe that the winners (such as materials, commodities, telecom, and cosmetics) so far in KOSPI from the key infection date (Jan 25, 2021), could continue to maintain their market leading status for the next couple of months. Nonetheless, there could be some big data coming out of the markets in August to October which could warrant out of consensus views on inflation at which point there could be some big changes to the trending stocks. 

Winners & Losers in KOSPI Since the Key Inflection Point & Biggest Fear in the Market (Inflation)