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>Around a third of the way though the review period, there could be 4 changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> at the December rebalance.</li>
<li>The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on the potential deletions varies from 2.5-16 days of ADV.</li>
<li>The potential adds have outperformed the potential deletions over the last few months and there could be more to go with short selling banned.</li>
</ul>


Around a third of the way though the review period, there could be 4 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the December rebalance.
The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on the potential deletions varies from 2.5-16 days of ADV.
The potential adds have outperformed the potential deletions over the last few months and there could be more to go with short selling banned.


KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

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

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

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

Equity Capital Markets

<p>Founded in 1995, Aju Steel specializes in producing color steel sheets. Color steel sheet is a high value-added material that has improved durability and functionality by processing the surface of steel to realize various colors and patterns. The company's color steel sheet products are mainly applied to premium home appliances and building interior and exterior materials where design is important. </p><p>The IPO price range of Aju Steel is from 12,700 won to 15,100 won. The IPO deal size is $78 million to $93 million. According to the bankers' valuation, the expected market cap after the IPO is from 336 billion won to 399 billion won. The book building for the institutional investors starts on 2 August 2021.</p><table class="table table-striped">
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<td style="width: 238pt;"><div>Deal Specifics of the Aju Steel IPO:</div></td>
<td style="width: 282pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 282pt;">Mirae Asset Securities</td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 282pt;">12,700 won (low)/15,100 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 282pt;">6.94m shares (4m new shares and 2.94m old shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 282pt;">US$78 mn (low);  US$93 mn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 282pt;">26.45m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 282pt;">336 billion won (low)/399 billion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 282pt;">2-Aug-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 282pt;">3-Aug-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 282pt;">TBD</td>
</tr>
<tr>
<td>Source: Company data</td>
<td style="width: 282pt;"> </td>
</tr>
</tbody>
</table><p><strong>Major Shareholders</strong> - The major shareholders of the company include the founder Lee Hak-Yeon (35.9%), Yoon Mi-Sook (16.3%) - wife of the founder Lee Hak-Yeon. </p>

Founded in 1995, Aju Steel specializes in producing color steel sheets. Color steel sheet is a high value-added material that has improved durability and functionality by processing the surface of steel to realize various colors and patterns. The company's color steel sheet products are mainly applied to premium home appliances and building interior and exterior materials where design is important. The IPO price range of Aju Steel is from 12,700 won to 15,100 won. The IPO deal size is $78 million to $93 million. According to the bankers' valuation, the expected market cap after the IPO is from 336 billion won to 399 billion won. The book building for the institutional investors starts on 2 August 2021.






Deal Specifics of the Aju Steel IPO:
 


Lead underwriters of the IPO: 
Mirae Asset Securities


Expected IPO price per share: 
12,700 won (low)/15,100 won (high)


Number of Shares for IPO:
6.94m shares (4m new shares and 2.94m old shares)


IPO base deal size: 
US$78 mn (low);  US$93 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
26.45m shares


Expected market cap after IPO:
336 billion won (low)/399 billion won (high)


Book open: 
2-Aug-21


Book closed:
3-Aug-21


Listing date: 
TBD


Source: Company data
 


Major Shareholders - The major shareholders of the company include the founder Lee Hak-Yeon (35.9%), Yoon Mi-Sook (16.3%) - wife of the founder Lee Hak-Yeon. 

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)

KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

There could be 4 changes for the KOSPI200 in December. The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on...

Brian Freitas

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

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

Aju Steel IPO Preview

The IPO price range of Aju Steel is from 12,700 won to 15,100 won. The IPO deal size is $78 million to $93 million. The expected market cap after...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KOSPI200 Index Rebalance Preview: 4 Changes Likely in December

There could be 4 changes for the KOSPI200 in December. The impact on the potential inclusions ranges from 0.6-21 days of ADV while the impact on...

Brian Freitas

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

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

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

Aju Steel IPO Preview

The IPO price range of Aju Steel is from 12,700 won to 15,100 won. The IPO deal size is $78 million to $93 million. The expected market cap after...

Douglas Kim