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

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hanwha-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:28308:1" rel="noopener">Hanwha Systems Co Ltd (272210 KS)</a> will be added to the MarketVector Global Defense Industry Index at the close on 19 September.</li>
<li>The constituent change, float changes and capping changes result in an estimated one-way turnover of 3.1% resulting in a round-trip trade of US$437m.</li>
<li>Inflows to the tracking ETF have slowed down but there could be more inflows after a period of consolidation in the underlying stocks.</li>
</ul>



Hanwha Systems Co Ltd (272210 KS) will be added to the MarketVector Global Defense Industry Index at the close on 19 September.
The constituent change, float changes and capping changes result in an estimated one-way turnover of 3.1% resulting in a round-trip trade of US$437m.
Inflows to the tracking ETF have slowed down but there could be more inflows after a period of consolidation in the underlying stocks.


MV Global Defense Industry Index Rebalance: Hanwha Systems Added as Stocks Play Offence

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 28 April.</li>
<li>Our top 10 picks in Korea were up on average 5.1% (from 11 to 25 April), outperforming KOSPI which is up 4.7% in the same period. </li>
<li>Our top 10 picks in this bi-weekly include Hanwha Systems, Hyundai Elevator, HD Hyundai, Hyundai Rotem, SK Telecom, Samyang Foods, KT&amp;G, Posco, SK Inc, and Korea Investment Holdings.</li>
</ul>


In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks starting 28 April.
Our top 10 picks in Korea were up on average 5.1% (from 11 to 25 April), outperforming KOSPI which is up 4.7% in the same period. 
Our top 10 picks in this bi-weekly include Hanwha Systems, Hyundai Elevator, HD Hyundai, Hyundai Rotem, SK Telecom, Samyang Foods, KT&amp;G, Posco, SK Inc, and Korea Investment Holdings.


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)

Equity Capital Markets

Hanwha Systems Co Ltd / Equity Capital Markets

<ul>
<li>In the past week, Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of incorporation.</li>
<li>This plan to significantly increase the amount of capital raise limit sets the stage for a major capital increase by Hanwha Systems in 2025, in our view. </li>
<li>Unlike in 2021 when we were bullish on Hanwha Systems post a large-scale capital raise, we are more cautious on the company's potential new large scale capital raise this year. </li>
</ul>


In the past week, Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of incorporation.
This plan to significantly increase the amount of capital raise limit sets the stage for a major capital increase by Hanwha Systems in 2025, in our view. 
Unlike in 2021 when we were bullish on Hanwha Systems post a large-scale capital raise, we are more cautious on the company's potential new large scale capital raise this year. 


Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares

Cross Asset Strategy

<ul>
<li>Korea Exchange plans to announce the first rebalance of the "Korea Value Up Index" next week on 27 May. The actual rebalance is expected to take place on 13 June.</li>
<li>Korea Exchange plans to reduce the constituents to 100 (from 105 currently) and change 30% of the included stocks in this index to better reflect the Value Up program incentives. </li>
<li>In this insight, we provide a list of 20 potential exclusion candidates and 20 inclusion candidates in the Value Up index rebalance. </li>
</ul>


Korea Exchange plans to announce the first rebalance of the "Korea Value Up Index" next week on 27 May. The actual rebalance is expected to take place on 13 June.
Korea Exchange plans to reduce the constituents to 100 (from 105 currently) and change 30% of the included stocks in this index to better reflect the Value Up program incentives. 
In this insight, we provide a list of 20 potential exclusion candidates and 20 inclusion candidates in the Value Up index rebalance. 


Korea Value Up Index Rebalance Announcement Next Week

Event-Driven

<ul>
<li>Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.</li>
<li>Through this sale, Hanwha Energy's value is estimated at approximately 5.5 trillion won. </li>
<li><em><strong>This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems. </strong></em></li>
</ul>


Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.
Through this sale, Hanwha Energy's value is estimated at approximately 5.5 trillion won. 
This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems. 


Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun

South Korea

Hanwha Systems Co., Ltd. designs, develops, and distributes high-tech systems for the defense industry. The Company manufactures tactical communication systems, radar systems, naval combat systems, electro-optics, and fire control systems. Hanwha Systems markets its products throughout South Korea.

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Hanwha Systems Co Ltd (272210 KS)

MV Global Defense Industry Index Rebalance: Hanwha Systems Added as Stocks Play Offence

Hanwha Systems will be added to the index. One-way turnover is 3.1% and the round-trip trade is US$437m. Most stocks are at or near new highs and...

Brian Freitas

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (Starting 28 April 2025)

Our top 10 picks in this bi-weekly include Hanwha Systems, Hyundai Elevator, HD Hyundai, Hyundai Rotem, SK Telecom, Samyang Foods, KT&G, Posco, SK...

Douglas Kim

Hanwha Systems: Expand 3rd Party Allocation Capital Increase Limit from 20% to 30% of Issued Shares

Hanwha Systems announced that it plans to expand third party allocation capital increase limit from 20% to 30% of issued shares in its articles of...

Douglas Kim

Korea Value Up Index Rebalance Announcement Next Week

Korea Exchange plans to announce the first rebalance of the "Korea Value Up Index" next week on 27 May. The actual rebalance is expected to take...

Douglas Kim

Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun

Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy which could result in negative...

Douglas Kim

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