Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024.</li>
<li>The seven potential additions are up on average 53.9% from end of 2023. The seven potential deletion candidates are down on average 14.2% YTD. </li>
<li>The average market cap of the seven potential additions is 2.2 trillion won. The average market cap of the seven potential deletion candidates is 0.7 trillion won. </li>
</ul>


In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024.
The seven potential additions are up on average 53.9% from end of 2023. The seven potential deletion candidates are down on average 14.2% YTD. 
The average market cap of the seven potential additions is 2.2 trillion won. The average market cap of the seven potential deletion candidates is 0.7 trillion won. 


An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

Cross Asset Strategy

<ul>
<li>KRX announced changes to KOSPI 200 and KOSDAQ 150 indices. In KOSPI 200, 6 were added and 6 were removed. In KOSDAQ 150, 13 were added and 13 were removed. </li>
<li>The six additions to KOSPI 200 had an average share price increase of 17.7% YTD. The six deletions had an average share price decline of 2.5% YTD.</li>
<li>One trading idea post the announcement of the KOSPI 200 and KOSDAQ 150 rebalances is to highlight the potential underperformers (including 20 lowest market cap stocks in KOSPI200/KOSDAQ150 post rebalance). </li>
</ul>


KRX announced changes to KOSPI 200 and KOSDAQ 150 indices. In KOSPI 200, 6 were added and 6 were removed. In KOSDAQ 150, 13 were added and 13 were removed. 
The six additions to KOSPI 200 had an average share price increase of 17.7% YTD. The six deletions had an average share price decline of 2.5% YTD.
One trading idea post the announcement of the KOSPI 200 and KOSDAQ 150 rebalances is to highlight the potential underperformers (including 20 lowest market cap stocks in KOSPI200/KOSDAQ150 post rebalance). 


Trading Idea Post Changes to KOSPI 200 and KOSDAQ 150

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.

Daejoo Electronic Materials / Event-Driven

<ul>
<li>The possibility of experiencing a CFD margin call is a genuine and persistent concern. Even a small trigger causes selling pressure to intensify and results in a rapid downward trend.</li>
<li>The counter that the local market is closely monitoring is JPM. The selling pressure from the JPM counter since May 8th has exhibited an abnormal pattern. </li>
<li>Eight names are screened. They are KOSPI 200/KOSDAQ 150 constituents with JPM's net selling volume to SO being 0.2% or higher, and a margin-equity ratio of 3% or higher.</li>
</ul>


The possibility of experiencing a CFD margin call is a genuine and persistent concern. Even a small trigger causes selling pressure to intensify and results in a rapid downward trend.
The counter that the local market is closely monitoring is JPM. The selling pressure from the JPM counter since May 8th has exhibited an abnormal pattern. 
Eight names are screened. They are KOSPI 200/KOSDAQ 150 constituents with JPM's net selling volume to SO being 0.2% or higher, and a margin-equity ratio of 3% or higher.


The Core of CFD Margin Call Risk May Lie in the JPM Counter, Not SG: Potentially Infected Names

<ul>
<li>Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets.</li>
<li>Most of the market rebound in KOSPI in the past 100 days have occurred in the past one week.</li>
<li>The rally in global equity markets in the past week seems to suggest some higher probability that the war in Ukraine could be ended in the next several months. </li>
</ul>


Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets.
Most of the market rebound in KOSPI in the past 100 days have occurred in the past one week.
The rally in global equity markets in the past week seems to suggest some higher probability that the war in Ukraine could be ended in the next several months. 


Kissinger's Warning that Ukraine Must Give Russia Territory - A Key Inflection Point for KOSPI?

Equity Bottom-Up

<ul>
<li>The war in Ukraine has been driving up the share prices of Korean steel producers including Posco (005490 KS), Hyundai Steel (004020 KS), and KG Dongbusteel Co., Ltd. (016380 KS).</li>
<li>On 20 March, the Azovstal steel plant, which is owned by Ukrainian steel and mining group Metinvest, was badly damaged by Russian shelling.</li>
<li>The war in Ukraine has resulted in reducing the steel supply in Ukraine and raising the steel prices globally. Korean steel producers have been key beneficiaries of these events.</li>
</ul>


The war in Ukraine has been driving up the share prices of Korean steel producers including Posco (005490 KS), Hyundai Steel (004020 KS), and KG Dongbusteel Co., Ltd. (016380 KS).
On 20 March, the Azovstal steel plant, which is owned by Ukrainian steel and mining group Metinvest, was badly damaged by Russian shelling.
The war in Ukraine has resulted in reducing the steel supply in Ukraine and raising the steel prices globally. Korean steel producers have been key beneficiaries of these events.


War in Ukraine Is Driving Up Share Prices of Korean Steel Producers

South Korea

KG Dongbusteel Co., Ltd. manufactures cold rolled sheets, such as commercial quality cold rolled steel sheets, deep drawing quality cold rolled sheets, and stabilized deep drawing cold rolled sheets.  The Company also offers special cold rolled sheets and plating base metals.

Price Gauge
52-week Range	0.00 - 0.00
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KG Dongbusteel Co., Ltd. (016380 KS)

An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

We provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024. The seven potential additions are up on...

Douglas Kim

Trading Idea Post Changes to KOSPI 200 and KOSDAQ 150

One trading idea post announcement of KOSPI 200 and KOSDAQ 150 rebalances is to highlight the potential underperformers (including 20 lowest market...

Douglas Kim

The Core of CFD Margin Call Risk May Lie in the JPM Counter, Not SG: Potentially Infected Names

This core of CFD margin call risk may lie in the JPM counter, not SG. This post presents eight names that are targetable for short-selling.

Sanghyun Park

Kissinger's Warning that Ukraine Must Give Russia Territory - A Key Inflection Point for KOSPI?

Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets. Global equity...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

An Early Look at Potential Deletions and Additions to KOSPI200 in December 2024

We provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2024. The seven potential additions are up on...

Douglas Kim

Trading Idea Post Changes to KOSPI 200 and KOSDAQ 150

One trading idea post announcement of KOSPI 200 and KOSDAQ 150 rebalances is to highlight the potential underperformers (including 20 lowest market...

Douglas Kim

The Core of CFD Margin Call Risk May Lie in the JPM Counter, Not SG: Potentially Infected Names

This core of CFD margin call risk may lie in the JPM counter, not SG. This post presents eight names that are targetable for short-selling.

Sanghyun Park

Kissinger's Warning that Ukraine Must Give Russia Territory - A Key Inflection Point for KOSPI?

Henry Kissinger's statement that Ukraine must give Russia some territory could be a crucial inflection point in the global markets. Global equity...

Douglas Kim

War in Ukraine Is Driving Up Share Prices of Korean Steel Producers

The war in Ukraine has resulted in reducing the steel supply in Ukraine and raising the steel prices globally. Korean steel producers including...

Douglas Kim