Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.</li>
<li>Six additions for position buildups: <strong>F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)</strong>
</li>
<li>Six deletions for position buildups: <strong>Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)</strong>
</li>
</ul>


Since we are currently at a point of two months toward the KOSPI 200 rebalancing, we should start building up positions on stocks with a higher probability among the candidates.
Six additions for position buildups: F&amp;F (383220 KS), Meritz Fire (000060 KS), SD Biosensor (137310 KS), Iljin Hysolus (271940 KS), Hanil Cement (300720 KS), &amp; K Car (381970 KS)

Six deletions for position buildups: Nexen Tire (002350 KS), Cuckoo Holdings (192400 KS), S&amp;T Motiv (064960 KS), Sk Discovery (006120 KS), Bukwang Pharmaceutical (003000 KS), &amp; Poongsan Corp (103140 KS)



KOSPI 200 Rebalancing D-60: Names for Position Buildups

<ul>
<li>The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.</li>
<li>LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.</li>
<li>F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.</li>
</ul>


The screening results based on the average market cap for the screening period until the last closing price have seven additions/deletions.
LG Energy will make Fast Entry. The one to make room for LG Energy should be Dongwon F&amp;B, an additional deletion to the seven deletions through the preliminary filtering.
F&amp;F Holdings may fail to meet the minimum float rate. If it doesn't make KOSPI 200 this time, Hyundai Marine &amp; Fire Insurance will get to stay in the Index.


KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

Below are the lockup releases scheduled for May among the KOSPI-listed stocks. We have four names from KOSPI 200, immediate short-selling targets after May 3. 










KOSPI
Ticker
Release date
Shares released
% of SO
KOSPI 200


Metalabs Co Ltd
090370
5/10
112,655
0.18%
-


Industrial Bank of Korea
024110
5/11
29,379,034
3.98%
72


Kyochon F&amp;B Co Ltd
339770
5/12
18,519,961
74.13%
-


Daiyang Metal Co Ltd
009190
5/12
7,326,007
24.78%
-


BK Tops Co Ltd
030790
5/15
4,671,077
35.58%
-


Industrial Bank of Korea
024110
5/18
57,523,357
7.79%
72


A Plus Asset Advisor Co Ltd
244920
5/20
6,170,440
27.29%
-


KH Feelux Co Ltd
033180
5/21
3,383,459
2.61%
-


Jooyon Tech Co Ltd
044380
5/21
1,236,093
2.26%
-


Koramco Energy Plus REIT Co Ltd
357120
5/30
48,300,000
69.38%
-


Boryung Pharmaceutical Co., Ltd
003850
6/1
3,420,000
6.56%
176


IGIS Residence REIT Co Ltd
350520
6/3
2,640,000
12.82%
-


Myoung Shin Industrial Co Ltd
009900
6/8
23,844,210
58.47%
-


Metalabs Co Ltd
090370
6/11
234,208
0.37%
-


JR Global REIT
348950
6/16
68,600,000
41.43%
-


MERITZ SECURITIES CO LTD
008560
6/17
58,651,026
8.68%
97


Metalabs Co Ltd
090370
6/18
286,902
0.45%
-


Kyobo Securities Co., Ltd.
030610
7/9
28,653,296
44.32%
-


Kukbo Co Ltd
001140
7/9
7,299,270
13.59%
-


Industrial Bank of Korea
024110
7/10
12,412,204
1.68%
72


Ascendio Co Ltd
012170
7/15
378,036
0.61%
-


Thelma Therapeutics Co Ltd
015540
7/30
1,100,528
8.18%
-


SoluM Co Ltd
248070
8/2
3,037,304
6.19%
-


Prestige Biopharma Ltd
950210
8/5
13,446,250
22.37%
-


CJ CGV Co Ltd
079160
8/8
2,054,510
5.85%
167

Source: KRX &amp; KSD



KOSPI Lockup Releases - Boryung Pharm, CJ CGV, Meritz Securities, & IBK

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<div class="content-highlight">
<p>On 9 April, the <a href="https://www.reuters.com/article/southkorea-nps/update-1-s-koreas-pension-fund-adjusts-rules-to-raise-domestic-equity-allocation-idUSL1N2M20EN" target="_blank" rel="noopener">NPS</a> announced that it will change rules to increase the allocation of Korean stocks, which would be the first time in a decade. This adjustment could be implemented starting next week. This change comes after a lot of pressure by the retail investors.</p>
<p>NPS increased the strategic asset allocation (SAA) limit for domestic equities from the current 2% to 3%, increasing the percentage of Korean stocks it can hold from the current band of 14.8% -18.8% (+/- 2% with 16.8% as base) to 13.8% -19.8% (+/- 3% with 16.8% as base). NPS's target of the domestic equity allocation is 16.8% (of total fund amount). <strong>As a result of this change, the sale of domestic stocks by the NPS is expected to slow down.</strong></p>
</div>


On 9 April, the NPS announced that it will change rules to increase the allocation of Korean stocks, which would be the first time in a decade. This adjustment could be implemented starting next week. This change comes after a lot of pressure by the retail investors.
NPS increased the strategic asset allocation (SAA) limit for domestic equities from the current 2% to 3%, increasing the percentage of Korean stocks it can hold from the current band of 14.8% -18.8% (+/- 2% with 16.8% as base) to 13.8% -19.8% (+/- 3% with 16.8% as base). NPS's target of the domestic equity allocation is 16.8% (of total fund amount). As a result of this change, the sale of domestic stocks by the NPS is expected to slow down.


<div class="content-highlight"><p><strong>It has been reported in the past few days that <a href="http://www.koreaninvestors.com/?p=12175" target="_blank" rel="noopener">NPS</a> is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. </strong>NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.</p></div><h3>Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)</h3><ul>
<li>Negative Impact on VICE industries </li>
<li>Positive Impact on Renewable Energy Industries</li>
<li>Negative Impact on Coal &amp; Oil Industries</li>
<li>Greater Representation of Women in Senior Management Team/BOD</li>
</ul>

It has been reported in the past few days that NPS is likely to put a greater emphasis on ESG (environmental, social, &amp; governance) based investing for Korean stocks and bonds starting 2021. NPS has currently given a mandate to a company to help NPS to apply ESG based investment system. The ESG evaluations are expected to aid NPS to actively exercise shareholder rights and also to carry out negative screening of stocks.Implications of NPS Incorporating More ESG Criteria on Domestic Investments (Bonds &amp; Stocks)
Negative Impact on VICE industries 
Positive Impact on Renewable Energy Industries
Negative Impact on Coal &amp; Oil Industries
Greater Representation of Women in Senior Management Team/BOD


NPS - Greater Emphasis of ESG Based Investing for Korean Stocks & Bonds Starting 2021

South Korea

CJ CGV Co., Ltd. develops and operates multi-screen movie theaters in South Korea.  The Company's theater complex also conducts stores and restaurants in theaters, and offers advertisement through screens.

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CJ CGV Co Ltd (079160 KS)

KOSPI 200 Rebalancing D-60: Names for Position Buildups

This post suggests six additions and six deletions that we should consider for position buildups as we are two months away from the KOSPI 200...

Sanghyun Park

KOSPI 200 Rebalancing Screening: Prediction Likelihood, Special Issues, & Passive Impacts

This post has the screening results of the KOSPI 200 rebalancing, with a focus on prediction likelihood, special considerations, and passive impacts.

Sanghyun Park

KOSPI Lockup Releases - Boryung Pharm, CJ CGV, Meritz Securities, & IBK

This post looks into the upcoming lockup releases among the KOSPI-listed stocks and examines those included in the KOSPI 200 for short-selling...

Sanghyun Park

NPS Raises Domestic Equity Allocations

NPS increased the strategic asset allocation (SAA) limit for domestic equities from the current 2% to 3%. As a result of this change, the sale of...

Douglas Kim

NPS - Greater Emphasis of ESG Based Investing for Korean Stocks & Bonds Starting 2021

It has been reported in the past few days that NPS is likely to put a greater emphasis on ESG (environmental, social, & governance) based...

Douglas Kim

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