Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>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> Index is currently rising for the 3rd week in a row and approaching the Q2 WEEKLY resistance level, but it's a very weak rally.</li>
<li>Between 329 and 331 there id a good area to go SHORT, the index could fall for 2-3 weeks from here, into early November.</li>
<li>A negative close in October would be =3 months down in a row (CC=-3), November in that case would have good odds for a rebound and close up.</li>
</ul>


The KOSPI 200 Index is currently rising for the 3rd week in a row and approaching the Q2 WEEKLY resistance level, but it's a very weak rally.
Between 329 and 331 there id a good area to go SHORT, the index could fall for 2-3 weeks from here, into early November.
A negative close in October would be =3 months down in a row (CC=-3), November in that case would have good odds for a rebound and close up.


EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<ul>
<li>The heightened political conflict between Russia and Ukraine which could lead to a more deadly military conflict has been impacting many defense related stocks in Korea this year.</li>
<li>A big concern is that this conflict could result in greater political outbursts around the world including between Taiwan &amp; China and South Korea &amp; North Korea.</li>
<li>The continued political conflict between Russia and Ukraine which could lead to further military conflict could lead to further outperformance of Korean defense stocks in the coming weeks. </li>
</ul>


The heightened political conflict between Russia and Ukraine which could lead to a more deadly military conflict has been impacting many defense related stocks in Korea this year.
A big concern is that this conflict could result in greater political outbursts around the world including between Taiwan &amp; China and South Korea &amp; North Korea.
The continued political conflict between Russia and Ukraine which could lead to further military conflict could lead to further outperformance of Korean defense stocks in the coming weeks. 


Korean Defense Plays Outperforming the Market in Light of Russia-Ukraine Conflict

Equity Capital Markets

<ul>
<li>Contec is getting ready to complete an IPO on the KOSDAQ exchange in October 2023. The IPO price range is from 20,300 won to 22,500 won. </li>
<li>According to the bankers' valuation, the expected IPO market cap is from 292 billion won to 324 billion won.</li>
<li>Contec was spun off from Korea Aerospace Research Institute and offers Space Ground Station Services and Satellite Image Processing &amp; Application Services.</li>
</ul>


Contec is getting ready to complete an IPO on the KOSDAQ exchange in October 2023. The IPO price range is from 20,300 won to 22,500 won. 
According to the bankers' valuation, the expected IPO market cap is from 292 billion won to 324 billion won.
Contec was spun off from Korea Aerospace Research Institute and offers Space Ground Station Services and Satellite Image Processing &amp; Application Services.


Event-Driven

<ul>
<li>After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.</li>
<li>The expected rights offering price is 22,350 won, which is 36% discount to current price. </li>
<li>We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean's share price.</li>
</ul>


After the market close on 23 August, Hanwha Ocean (042660 KS) confirmed that it will conduct a massive rights offering of 2 trillion won.
The expected rights offering price is 22,350 won, which is 36% discount to current price. 
We believe this rights offering is likely to dilute the existing shareholders and negatively impact Hanwha Ocean's share price.


Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>According to the Stockholm International Peace Research Institute (SIPRI), total global military expenditure increased by 3.7% in real terms in 2022, to reach a new high of $2,240bn.</li>
<li>A number of European states significantly increased their military spending following Russia’s invasion of Ukraine. Elsewhere, Japan’s 2022 military spending accounts for 1.1% of GDP, the highest level since 1960.</li>
<li>South Korea had four companies inside the world’s top 100 arms manufacturers in 2021. These conglomerates are expected to move up the ranking in 2022. </li>
</ul>


According to the Stockholm International Peace Research Institute (SIPRI), total global military expenditure increased by 3.7% in real terms in 2022, to reach a new high of $2,240bn.
A number of European states significantly increased their military spending following Russia’s invasion of Ukraine. Elsewhere, Japan’s 2022 military spending accounts for 1.1% of GDP, the highest level since 1960.
South Korea had four companies inside the world’s top 100 arms manufacturers in 2021. These conglomerates are expected to move up the ranking in 2022. 


South Korea

Hanwha Aerospace Co., Ltd. operates as an aircraft parts manufacturing company. The Company produces and sells aircraft gas turbine engine products, aircraft compressors, low pressure turbines, and other products. Hanwha Aerospace markets its products worldwide.

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Hanwha Aerospace (012450 KS)

EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...

Nico Rosti

Korean Defense Plays Outperforming the Market in Light of Russia-Ukraine Conflict

Amid the outbreak of a new war in Israel, there is likely to be increased capital inflow into global military/aerospace stocks. This insight...

Douglas Kim

Contec IPO Preview

Contec is getting ready to complete an IPO on the KOSDAQ exchange in October 2023.Contec offers Space Ground Station Services and Satellite Image...

Douglas Kim

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

Hanwha Ocean confirmed that it will conduct a rights offering of 2 trillion won. We believe this rights offering is likely to dilute the existing...

Douglas Kim

Asian Defence Contractors: Up In Arms

Defence spending beneficiaries include Hyundai Rotem (064350 KS) and Aerospace Industrial Development (2634 TT). For relval, short Poongsan Corp...

David Blennerhassett

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EQD | KOSPI 200 Frail WEEKLY Rally Is Ending

​The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...

Nico Rosti

Korean Defense Plays Outperforming the Market in Light of Russia-Ukraine Conflict

Amid the outbreak of a new war in Israel, there is likely to be increased capital inflow into global military/aerospace stocks. This insight...

Douglas Kim

Contec IPO Preview

Contec is getting ready to complete an IPO on the KOSDAQ exchange in October 2023.Contec offers Space Ground Station Services and Satellite Image...

Douglas Kim

Hanwha Ocean: Big Shares Dilution from Rights Offering of 2 Trillion Won

Hanwha Ocean confirmed that it will conduct a rights offering of 2 trillion won. We believe this rights offering is likely to dilute the existing...

Douglas Kim

Asian Defence Contractors: Up In Arms

Defence spending beneficiaries include Hyundai Rotem (064350 KS) and Aerospace Industrial Development (2634 TT). For relval, short Poongsan Corp...

David Blennerhassett

The KOSPI 200 Index is rising for the 3rd week but it's a weak rally. Go SHORT between 329 and 331, hold 2-3 weeks. A negative close in October...