Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

<h2>KOSPI 200 likely deletes</h2><p><strong>Lock&amp;Lock and JW Pharmaceutical Corp are expected to be excluded due to Kakao Bank and Krafton's inclusion in the KOSPI 200.</strong></p><p>Below is the Fast Entry rule of KOSPI 200. Stocks with the lowest market cap in the recent rebalancing period are excluded.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/225/508/original/image?1629690665" class="editor-image img-responsive" data-smartkarma-image-id="225508"></figure></section><p>The recent rebalancing period is from November 1, 2020 to April 30, 2021. The stocks with the lowest daily average market cap during this period are as follows:</p><table class="table table-striped">
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<td>KOSPI 200 constituents sitting at the bottom by average daily market cap</td>
<td style="text-align: right;">Ticker</td>
<td style="text-align: right;">Average daily market cap from November 1, 2020 to April 30, 2021</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LX Hausys Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>LX Hausys Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":108670}' data-sheets-formula='=if(len(R[0]C[2])=2, "0000"&amp;R[0]C[2], if(len(R[0]C[2])=3, "000"&amp;R[0]C[2], if(LEN(R[0]C[2])=4, "00"&amp;R[0]C[2], if(len(R[0]C[2])=5, "0"&amp;R[0]C[2], if(len(R[0]C[2])=6, R[0]C[2], 0)))))'>108670</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":694.5749694677418}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-1], "price", date(2020,11,1), date(2021,4,30)), 0, 2))*googlefinance(R[0]C[-1], "shares")/1000000000'>₩694.6B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Doosan Infracore Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Doosan Infracore Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"042670"}' data-sheets-formula='=if(len(R[0]C[2])=2, "0000"&amp;R[0]C[2], if(len(R[0]C[2])=3, "000"&amp;R[0]C[2], if(LEN(R[0]C[2])=4, "00"&amp;R[0]C[2], if(len(R[0]C[2])=5, "0"&amp;R[0]C[2], if(len(R[0]C[2])=6, R[0]C[2], 0)))))'>042670</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":694.195389710244}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-1], "price", date(2020,11,1), date(2021,4,30)), 0, 2))*googlefinance(R[0]C[-1], "shares")/1000000000'>₩694.2B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Nexen Tire Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Nexen Tire Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"002350"}' data-sheets-formula='=if(len(R[0]C[2])=2, "0000"&amp;R[0]C[2], if(len(R[0]C[2])=3, "000"&amp;R[0]C[2], if(LEN(R[0]C[2])=4, "00"&amp;R[0]C[2], if(len(R[0]C[2])=5, "0"&amp;R[0]C[2], if(len(R[0]C[2])=6, R[0]C[2], 0)))))'>002350</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":676.5942179175}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-1], "price", date(2020,11,1), date(2021,4,30)), 0, 2))*googlefinance(R[0]C[-1], "shares")/1000000000'>₩676.6B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"JW Pharmaceutical Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>JW Pharmaceutical Corp</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"001060"}' data-sheets-formula='=if(len(R[0]C[2])=2, "0000"&amp;R[0]C[2], if(len(R[0]C[2])=3, "000"&amp;R[0]C[2], if(LEN(R[0]C[2])=4, "00"&amp;R[0]C[2], if(len(R[0]C[2])=5, "0"&amp;R[0]C[2], if(len(R[0]C[2])=6, R[0]C[2], 0)))))'><strong>001060</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":675.1852089654669}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-1], "price", date(2020,11,1), date(2021,4,30)), 0, 2))*googlefinance(R[0]C[-1], "shares")/1000000000'><strong>₩675.2B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lock&amp;Lock Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Lock&amp;Lock Co Ltd</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":115390}' data-sheets-formula='=if(len(R[0]C[2])=2, "0000"&amp;R[0]C[2], if(len(R[0]C[2])=3, "000"&amp;R[0]C[2], if(LEN(R[0]C[2])=4, "00"&amp;R[0]C[2], if(len(R[0]C[2])=5, "0"&amp;R[0]C[2], if(len(R[0]C[2])=6, R[0]C[2], 0)))))'><strong>115390</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":669.7708991682928}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-1], "price", date(2020,11,1), date(2021,4,30)), 0, 2))*googlefinance(R[0]C[-1], "shares")/1000000000'><strong>₩669.8B</strong></td>
</tr>
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<td>Source: KRX</td>
<td style="text-align: right;"></td>
<td style="text-align: right;"></td>
</tr>
</tbody>
</table>

KOSPI 200 likely deletesLock&amp;Lock and JW Pharmaceutical Corp are expected to be excluded due to Kakao Bank and Krafton's inclusion in the KOSPI 200.Below is the Fast Entry rule of KOSPI 200. Stocks with the lowest market cap in the recent rebalancing period are excluded.The recent rebalancing period is from November 1, 2020 to April 30, 2021. The stocks with the lowest daily average market cap during this period are as follows:







KOSPI 200 constituents sitting at the bottom by average daily market cap
Ticker
Average daily market cap from November 1, 2020 to April 30, 2021


LX Hausys Ltd
108670
₩694.6B


Doosan Infracore Co Ltd
042670
₩694.2B


Nexen Tire Corp
002350
₩676.6B


JW Pharmaceutical Corp
001060
₩675.2B


Lock&amp;Lock Co Ltd
115390
₩669.8B


Source: KRX






Likely Deletes by KOSPI 200 Fast Entry on September 9: JW Pharma & Lock&Lock

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>There could be two changes to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the September index futures expiry with <a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (1349010D KS)</a> and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> getting Fast Entry and replacing <a href="https://www.smartkarma.com/entities/lock-lock-co-ltd" target="_blank" data-smartkarma-citation="entities:4739:1" rel="noopener">Lock&amp;Lock (115390 KS)</a> and <a href="https://www.smartkarma.com/entities/jw-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:18784:1" rel="noopener">Jw Pharmaceutical (001060 KS)</a> at the close of trading on 9 September.</p><p>Then, the Korea Exchange (KRX) will announce the results of the December 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in November. The constituent changes will be effective after the close of trading on 9 December.</p><p>We see 5 potential changes at the December rebalance with <a href="https://www.smartkarma.com/entities/f-f-co-ltd-new" target="_blank" data-smartkarma-citation="entities:33479:1" rel="noopener">F&amp;F (383220 KS)</a>, <a href="https://www.smartkarma.com/entities/sl-corp" target="_blank" data-smartkarma-citation="entities:20694:1" rel="noopener">SL Corp (005850 KS)</a>, <a href="https://www.smartkarma.com/entities/geneone-life-science-inc" target="_blank" data-smartkarma-citation="entities:6549:1" rel="noopener">GeneOne Life Science Inc. (011000 KS)</a>, <a href="https://www.smartkarma.com/entities/myoung-shin-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:29698:1" rel="noopener">Myoung Shin Industrial Co.,Ltd (009900 KS)</a> and <a href="https://www.smartkarma.com/entities/hyosung-chemical-corp" target="_blank" data-smartkarma-citation="entities:27752:1" rel="noopener">Hyosung Chemical Corp (298000 KS)</a> replacing <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a>, <a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a>, <a href="https://www.smartkarma.com/entities/ilyang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:2789:1" rel="noopener">Ilyang Pharmaceutical Co., (007570 KS)</a>, <a href="https://www.smartkarma.com/entities/lx-holdings" target="_blank" data-smartkarma-citation="entities:33384:1" rel="noopener">LX Holdings (383800 KS)</a> and <a href="https://www.smartkarma.com/entities/dongwon-f-b-co-ltd" target="_blank" data-smartkarma-citation="entities:3274:1" rel="noopener">Dongwon F&amp;B (049770 KS)</a>.</p><p>The potential inclusions have been outperforming the potential exclusions and this could continue as short selling is only permitted on index constituents and as active funds position for the rebalance following excellent returns at the June rebalance.</p>

There could be two changes to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the September index futures expiry with KakaoBank (1349010D KS) and  Krafton Inc (259960 KS) getting Fast Entry and replacing Lock&amp;Lock (115390 KS) and Jw Pharmaceutical (001060 KS) at the close of trading on 9 September.Then, the Korea Exchange (KRX) will announce the results of the December 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective after the close of trading on 9 December.We see 5 potential changes at the December rebalance with F&amp;F (383220 KS), SL Corp (005850 KS), GeneOne Life Science Inc. (011000 KS), Myoung Shin Industrial Co.,Ltd (009900 KS) and Hyosung Chemical Corp (298000 KS) replacing F&amp;F Co Ltd (007700 KS), Samyang Foods (003230 KS), Ilyang Pharmaceutical Co., (007570 KS), LX Holdings (383800 KS) and Dongwon F&amp;B (049770 KS).The potential inclusions have been outperforming the potential exclusions and this could continue as short selling is only permitted on index constituents and as active funds position for the rebalance following excellent returns at the June rebalance.

KOSPI200 Index Rebalance Preview: Two Changes in September; Five in December

<p>The Korea Exchange (KRX) will announce the results of the December 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in November. The constituent changes will be effective after the close of trading on 9 December.</p><p>There could be a change at the September futures expiry with <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (SDBIOZ KS)</a> getting Fast Entry into the index. We see <a href="https://www.smartkarma.com/entities/lock-lock-co-ltd" target="_blank" data-smartkarma-citation="entities:4739:1" rel="noopener">Lock&amp;Lock (115390 KS)</a> as a potential deletion to make way for <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (SDBIOZ KS)</a>. </p><p>At the current time, we see 3 potential changes at the regular review in December with F&amp;F Co (383220 KS), <a href="https://www.smartkarma.com/entities/sl-corp" target="_blank" data-smartkarma-citation="entities:20694:1" rel="noopener">Sl Corp (005850 KS)</a> and <a href="https://www.smartkarma.com/entities/seah-besteel-corp" target="_blank" data-smartkarma-citation="entities:11760:1" rel="noopener">Seah Besteel (001430 KS)</a> replacing <a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a>, <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a> and <a href="https://www.smartkarma.com/entities/jw-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:18784:1" rel="noopener">Jw Pharmaceutical (001060 KS)</a>. These names could change over the next few months and their prices (and the prices of the other stocks) move around.</p><p>After the 100%+ returns in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> June review by buying the inclusions and selling the exclusions (or the KOSPI2 index futures), there will be a lot of interest in the December review.</p><p>In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.</p>

The Korea Exchange (KRX) will announce the results of the December 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective after the close of trading on 9 December.There could be a change at the September futures expiry with SD Biosensor (SDBIOZ KS) getting Fast Entry into the index. We see Lock&amp;Lock (115390 KS) as a potential deletion to make way for SD Biosensor (SDBIOZ KS). At the current time, we see 3 potential changes at the regular review in December with F&amp;F Co (383220 KS), Sl Corp (005850 KS) and Seah Besteel (001430 KS) replacing Samyang Foods (003230 KS), F&amp;F Co Ltd (007700 KS) and Jw Pharmaceutical (001060 KS). These names could change over the next few months and their prices (and the prices of the other stocks) move around.After the 100%+ returns in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) June review by buying the inclusions and selling the exclusions (or the KOSPI2 index futures), there will be a lot of interest in the December review.In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.

KOSPI200 Index Rebalance Preview: Focus Shifts to December After a Fantastic June Review

South Korea

JW Pharmaceutical Corp manufactures prescription and over-the counter drugs. The Company produces transfusion fluids, antibiotics, anesthetics, and respiratory and circulatory medications.

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Jw Pharmaceutical (001060 KS)

Likely Deletes by KOSPI 200 Fast Entry on September 9: JW Pharma & Lock&Lock

This post examines the likely deletes (JW Pharma & Lock&Lock) due to the KOSPI 200 Fast Entry on September 9. It looks into the passive impact and...

Sanghyun Park

KOSPI200 Index Rebalance Preview: Two Changes in September; Five in December

We see 2 potential Fast Entry changes in September & then 5 more changes at the December rebalance. The adds are outperforming the deletes and the...

Brian Freitas

KOSPI200 Index Rebalance Preview: Focus Shifts to December After a Fantastic June Review

We see 1 potential change in September and 3 potential changes at the KOSPI200 December review. Post the excellent returns at the June rebalance,...

Brian Freitas

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