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

<ul>
<li>The results are pretty much in line with the predictions, except for Hanwha Aerospace which made it to LARGE instead of Hyundai Marine &amp; Fire Insurance.</li>
<li>Assuming that ten names, including Hyundai Marine, were traded in a LONG/SHORT basket with equal weight, the yield from August 17 to the last close would have been 4.6%.</li>
<li>I would still approach with an equal-weighted basket trading until this Thursday. This flow trading usually loses its effect rapidly after rebalancing. So, I wouldn't carry it beyond this Thursday.</li>
</ul>


The results are pretty much in line with the predictions, except for Hanwha Aerospace which made it to LARGE instead of Hyundai Marine &amp; Fire Insurance.
Assuming that ten names, including Hyundai Marine, were traded in a LONG/SHORT basket with equal weight, the yield from August 17 to the last close would have been 4.6%.
I would still approach with an equal-weighted basket trading until this Thursday. This flow trading usually loses its effect rapidly after rebalancing. So, I wouldn't carry it beyond this Thursday.


KOSPI Size Index Migration: Official Results & Trading Approach Towards Implementation

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

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Equity Bottom-Up

<ul><li>The SET Index is expected to weaken, with the resistance at 1,630/1,640 points and the support at 1,614 points (10/25-day EMA)/1,608 points (50-day EMA).</li><li>We suggest trading buy on ASIAN, TFG and JMART.</li><li>Negative momentum will be generated from China's lockdown of a major city where the production bases of chips and autos are located.</li></ul>

The SET Index is expected to weaken, with the resistance at 1,630/1,640 points and the support at 1,614 points (10/25-day EMA)/1,608 points (50-day EMA).We suggest trading buy on ASIAN, TFG and JMART.Negative momentum will be generated from China's lockdown of a major city where the production bases of chips and autos are located.

<ul><li>The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA).</li><li>We recommend trading buy on CRC, TFG and BDMS.</li><li>Technically, the index may swing in the range of 1,620 points (200-day EMA) before a clear direction becomes apparent, but the uptrend momentum will be maintained if it manages to close above 1,620 points.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA).We recommend trading buy on CRC, TFG and BDMS.Technically, the index may swing in the range of 1,620 points (200-day EMA) before a clear direction becomes apparent, but the uptrend momentum will be maintained if it manages to close above 1,620 points.

<ul><li>The SET Index is expected to gain, with the resistance at 1,630/1,640 points and the support at 1,611/1,605 points.</li><li>We recommend trading buy on KBANK, MINT and ERW.</li><li>Technically, the index remains in an uptrend, with the key resistance at 1,650 points and 1,680 points, respectively.</li></ul>

The SET Index is expected to gain, with the resistance at 1,630/1,640 points and the support at 1,611/1,605 points.We recommend trading buy on KBANK, MINT and ERW.Technically, the index remains in an uptrend, with the key resistance at 1,650 points and 1,680 points, respectively.

GS Engineering & Construction / Event-Driven

GS Engineering & Construction (006360 KS)

<ul>
<li>Eight stocks are highly likely to migrate with a substantial passive flow. Compared to the early phase of the screening period, GS Engineering &amp; Construction newly made the list.</li>
<li>Most names should show a quite substantial passive flow (x ADTV). In particular, KCC Corp and BGF Retail deserve our special attention for their expected passive impact.</li>
<li>The flow occurs on high potential migration stocks about 20 days before the effective date. So I would start building Long/Short Basket positions with the above eight names around mid-August.</li>
</ul>


Eight stocks are highly likely to migrate with a substantial passive flow. Compared to the early phase of the screening period, GS Engineering &amp; Construction newly made the list.
Most names should show a quite substantial passive flow (x ADTV). In particular, KCC Corp and BGF Retail deserve our special attention for their expected passive impact.
The flow occurs on high potential migration stocks about 20 days before the effective date. So I would start building Long/Short Basket positions with the above eight names around mid-August.


KOSPI Size Index Series Rebalancing in September: Eight Strong Targets

South Korea

KCC Corp, manufactures paint & related product, building materials such as cement corrugated sheet, glass wool mat, and board & pipe cover, PVC window profile, paints, and ceramic fiber for high temperature applications. The Company also produces various glasses such as glass fiber, float glass, patterned glass, safety tempered glass, and long glass fibers.

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Kcc Corp (002380 KS)

KOSPI Size Index Migration: Official Results & Trading Approach Towards Implementation

This post looks at the official results of the KOSPI Size Index migration in the September rebalancing and discusses the noteworthy flow patterns...

Sanghyun Park

Market Outlook

The SET Index is expected to weaken, with the resistance at 1,630/1,640 points and the support at 1,614 points (10/25-day EMA)/1,608 points...

Krungthai XSpring

Market Outlook and Recommendations

The SET Index is expected to move sideways, with the resistance at 1,650/1,658 points and the support at 1,630/1,615 points (10/25-day EMA). We...

Krungthai XSpring

Market Outlook

The SET Index is expected to gain, with the resistance at 1,630/1,640 points and the support at 1,611/1,605 points. We recommend trading buy on...

Krungthai XSpring

KOSPI Size Index Series Rebalancing in September: Eight Strong Targets

This post filters eight strong targets for long/short basket trading ahead of the September KOSPI Size Index Series rebalancing.

Sanghyun Park

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