Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Korea Stock Exchange Kospi Index / Event-Driven

Korea Stock Exchange Kospi Index (KOSPI INDEX)

<ul>
<li>Media reports indicate that the National Pension Service (NPS) could invest up to KRW 11tn (US$8.2bn) in a new index tracking stocks with low Price to Book ratios.</li>
<li>Filtering stocks with market cap higher than US$500m, ADTV of atleast US$1m, div yield of atleast 1.5% and Price to Book less than 1 throws up 94 potential index candidates.</li>
<li>Choosing an index of 50 stocks will require managers to buy between 1.7-3.4% of the float on the stocks. Increasing the number of constituents will reduce the impact.</li>
</ul>


Media reports indicate that the National Pension Service (NPS) could invest up to KRW 11tn (US$8.2bn) in a new index tracking stocks with low Price to Book ratios.
Filtering stocks with market cap higher than US$500m, ADTV of atleast US$1m, div yield of atleast 1.5% and Price to Book less than 1 throws up 94 potential index candidates.
Choosing an index of 50 stocks will require managers to buy between 1.7-3.4% of the float on the stocks. Increasing the number of constituents will reduce the impact.


Korea Value-Up Index: Probable Constituents & Impact of NPS' US$8.2bn Allocation

<ul>
<li>Following the short sell ban announced on the weekend, the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150</a> opened higher on Monday and rallied through the day.</li>
<li>A lot of the intraday gains on Monday have been given up over the next two trading days. Surprisingly, KRX data indicates that not a lot of shorts have covered.</li>
<li>Foreigners have been net cash buyers since Monday (could indicate covering of offshore borrow) while retail were big sellers on Monday.</li>
</ul>


Following the short sell ban announced on the weekend, the KOSPI 200 and KOSDAQ 150 opened higher on Monday and rallied through the day.
A lot of the intraday gains on Monday have been given up over the next two trading days. Surprisingly, KRX data indicates that not a lot of shorts have covered.
Foreigners have been net cash buyers since Monday (could indicate covering of offshore borrow) while retail were big sellers on Monday.


Korea Short Sell Ban: Not a Lot Covered on Monday; Shorts Holding On?

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>For 1Q26, Kia Corp. (Kia) reported revenue of W29.5tr (+5.3% YoY; in line with the consensus of W29.4tr), operating profit of W2.2tr (-26.7% YoY; 4% below the consensus of W2.29tr), and an OP margin of 7.5% (-3.3%p YoY).</li><li>While operating profit missed the consensus, it was broadly in line with recently lowered market expectations.</li><li>Operating profit declined due to negative YoY effects from the 15% US tariff (-W755bn), adverse quarter-end FX movements (-W255.7bn), and higher incentives (-W215bn). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 1Q26, Kia Corp. (Kia) reported revenue of W29.5tr (+5.3% YoY; in line with the consensus of W29.4tr), operating profit of W2.2tr (-26.7% YoY; 4% below the consensus of W2.29tr), and an OP margin of 7.5% (-3.3%p YoY).While operating profit missed the consensus, it was broadly in line with recently lowered market expectations.Operating profit declined due to negative YoY effects from the 15% US tariff (-W755bn), adverse quarter-end FX movements (-W255.7bn), and higher incentives (-W215bn). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kia Corp. (000270 KS/Buy)Favorable Mix Effects and Growing EV Demand

<ul><li>For 4Q25, Kia Corp. (Kia) reported broadly in-line results with revenue of W28.1tr (+3.5% YoY; vs. consensus of W28.4tr), operating profit of W1.84tr (-32% YoY; vs. consensus of W1.87tr), and an OP margin of 6.6% (-3.4%p YoY, +1.5%p QoQ).</li><li>Operating profit saw negative YoY effects from tariffs (-W1tr), incentives (-W342bn) and volume (-W132bn), but mix (+W2bn), pricing (+W90bn), cost reductions (+108bn) and FX (+424bn) had positive effects.</li><li>The effect of the reduced tariff rate (15%) appears to have been reflected from December, resulting in a slightly smaller tariff impact in 4Q25 compared with 3Q25 (-W1.2tr). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 4Q25, Kia Corp. (Kia) reported broadly in-line results with revenue of W28.1tr (+3.5% YoY; vs. consensus of W28.4tr), operating profit of W1.84tr (-32% YoY; vs. consensus of W1.87tr), and an OP margin of 6.6% (-3.4%p YoY, +1.5%p QoQ).Operating profit saw negative YoY effects from tariffs (-W1tr), incentives (-W342bn) and volume (-W132bn), but mix (+W2bn), pricing (+W90bn), cost reductions (+108bn) and FX (+424bn) had positive effects.The effect of the reduced tariff rate (15%) appears to have been reflected from December, resulting in a slightly smaller tariff impact in 4Q25 compared with 3Q25 (-W1.2tr). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kia Corp. (000270 KS/Buy)Upbeat Guidance, Boston Dynamics Stake, and Dividends

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Valuation estimates for Boston Dynamics have risen to more than 30 trillion won to 50+ trillion won post CES 2026. </li>
<li>The main reason for the sharp share price appreciation of both companies in the past six months has been due to the surging optimism regarding Boston Dynamics' Atlas humaniod robots. </li>
<li>We argue that it is time for Kia Corp's share price to catch up to Hyundai Motor in the next 6-12 months. </li>
</ul>


Valuation estimates for Boston Dynamics have risen to more than 30 trillion won to 50+ trillion won post CES 2026. 
The main reason for the sharp share price appreciation of both companies in the past six months has been due to the surging optimism regarding Boston Dynamics' Atlas humaniod robots. 
We argue that it is time for Kia Corp's share price to catch up to Hyundai Motor in the next 6-12 months. 


Kia Corp - Time to Catch Up to Hyundai Motor Amid Boston Dynamic's Roll-Out of Atlas Robots

South Korea

Kia Corporation manufactures, sells, and exports passenger cars, mini-buses, trucks and commercial vehicles. The Company also manufactures auto-parts and tools using hybrid electric and fuel cell technology. Kia markets its products worldwide.

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Kia Corp (000270 KS)

Korea Value-Up Index: Probable Constituents & Impact of NPS' US$8.2bn Allocation

The NPS and KRW as said to be discussing the creation of the Korea Value-Up Index and the NPS could benchmark KRW 11tn to the index. We look at...

Brian Freitas

Korea Short Sell Ban: Not a Lot Covered on Monday; Shorts Holding On?

Not a lot of shorts were covered on Monday. There could be more covering in the near term as the market drifts lower. KOSPI200 underperformed...

Brian Freitas