Chief Economist & Political Strategist, CrossASEAN Research

Prasenjit K. Basu

Chief Economist & Political Strategist

REAL-Economics.com

Thematic (Sector/Industry)

Korean equities have always carried a "Korea discount", which has resulted in much lower P/E ratios for Korean stocks than the Asian average. At end-March 2018, Korea's P/E of 11.9x was, as usual, the lowest in Asia, with the range for other markets being 16x for Taiwan, to 22.4x for India and 27x for Japan. While part of this Korea Discount is attributable to poor corporate governance, the discount persisted even after the reforms undertaken by Kim Dae-jung (partly at the behest of the IMF) in…

Korean equities have always carried a "Korea discount", which has resulted in much lower P/E ratios for Korean stocks than the Asian average. At end-March 2018, Korea's P/E of 11.9x was, as usual, the lowest in Asia, with the range for other markets being 16x for Taiwan, to 22.4x for India and 27x for Japan. While part of this Korea Discount is attributable to poor corporate governance, the discount persisted even after the reforms undertaken by Kim Dae-jung (partly at the behest of the IMF) in…

The End of The "Korea Discount" As DJ Kim's "Sunshine Policy" Is Poised to Win Big

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Nasdaq-100 Stock Index / Technical Analysis

<figure class="editor-figure mceNonEditable"><img class="editor-image img-responsive" src="https://static-prod.smartkarma.com/images/media/000/048/281/original/CP%20header.jpg?1522122058" data-smartkarma-image-id="48281"></figure>In our macro weekend edition we outlined a tactical bounce level from S&amp;P 2,600-2,590.S&amp;P - 2,660 was sliced through but the primary support lies at 2,600-2,590. Below the later would seek out a new low near 2,450. Near term we see at least a tactical bounce from the lower 2,600 region with fresh resistance now at 2,660 and bigger resistance at 2,688 (then rolls over again).DJI - Triangle support break was a game changer and implies we try for a new chart low near sub 23k but near term we are…

In our macro weekend edition we outlined a tactical bounce level from S&amp;P 2,600-2,590.S&amp;P - 2,660 was sliced through but the primary support lies at 2,600-2,590. Below the later would seek out a new low near 2,450. Near term we see at least a tactical bounce from the lower 2,600 region with fresh resistance now at 2,660 and bigger resistance at 2,688 (then rolls over again).DJI - Triangle support break was a game changer and implies we try for a new chart low near sub 23k but near term we are…

<figure class="editor-figure mceNonEditable"><img class="editor-image img-responsive" src="https://static-prod.smartkarma.com/images/media/000/046/669/original/CP%20header.jpg?1520570037" data-smartkarma-image-id="46669"></figure>Pre NFP Friday 9 March 2018Our base case called for a low and rally from S&amp;P 2,660 to 2,740-50 and where we are currently resting. The following webcast outlines levels in the US that will induce a secondary fade pullback of extended rise that will impact/shift the global cycle. T Note futures have formed a powerful micro triangle pattern that will be followed by an explosive breakout; trigger levels are outlined. Bond yield will act as the primary driver for inflection key equity pivot levels.…

Pre NFP Friday 9 March 2018Our base case called for a low and rally from S&amp;P 2,660 to 2,740-50 and where we are currently resting. The following webcast outlines levels in the US that will induce a secondary fade pullback of extended rise that will impact/shift the global cycle. T Note futures have formed a powerful micro triangle pattern that will be followed by an explosive breakout; trigger levels are outlined. Bond yield will act as the primary driver for inflection key equity pivot levels.…

FTSE China A50 Index / Technical Analysis

<div style="text-align: left;">Asia bid support is coming through with signs of resilience. This tactical insight outlines S&amp;P pivot levels and the markets that are showing a firmer chart and bid support bias in Asia as well as the weaker market postures where we want to reduce risk on tactical strength. February is a seasonally weak month with US equities in a fragile state barring a push back above S&amp;P 2,810. We placed short protection at S&amp;P 2,844 and 2,807 on the back of warning signals of a fallout and followed with…</div>

Asia bid support is coming through with signs of resilience. This tactical insight outlines S&amp;P pivot levels and the markets that are showing a firmer chart and bid support bias in Asia as well as the weaker market postures where we want to reduce risk on tactical strength. February is a seasonally weak month with US equities in a fragile state barring a push back above S&amp;P 2,810. We placed short protection at S&amp;P 2,844 and 2,807 on the back of warning signals of a fallout and followed with…

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

Hyundai Construction Equipment / Index Rebalance

Hyundai Construction Equipment (267270 KS)

<ul>
<li>With over 90% of the review period complete, there could be 4 constituent 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>  in June.</li>
<li>The changes are driven mainly by the direct deletions with balancing adds to maintain the number of index constituents at 200.</li>
<li>The forecast adds have outperformed the forecast deletes over the last few months, but the gap has narrowed in the last few weeks. Positioning will pick-up in the near term.</li>
</ul>


With over 90% of the review period complete, there could be 4 constituent changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)  in June.
The changes are driven mainly by the direct deletions with balancing adds to maintain the number of index constituents at 200.
The forecast adds have outperformed the forecast deletes over the last few months, but the gap has narrowed in the last few weeks. Positioning will pick-up in the near term.


KOSPI200 Index Rebalance Preview: Positioning Expected to Pick Up

South Korea

The KOSPI 200 Index is a capitalization-weighted index of 200 Korean stocks which make up 93% of the total market value of the Korea Stock Exchange. The index was developed with a base value of 100 as of January 3, 1990.

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
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Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

The End of The "Korea Discount" As DJ Kim's "Sunshine Policy" Is Poised to Win Big

Korean equities have always carried a "Korea discount", which has resulted in much lower P/E ratios for Korean stocks than the Asian average. At...

Prasenjit K. Basu

Next Fade Trade in Tech

In our macro weekend edition we outlined a tactical bounce level from S&P 2,600-2,590.S&P - 2,660 was sliced through but the primary...

Thomas Schroeder

S&P/Bond Levels that Will Tip the Scales

Pre NFP Friday 9 March 2018Our base case called for a low and rally from S&P 2,660 to 2,740-50 and where we are currently resting. The...

Thomas Schroeder

Asia Chart Levels and Where to Add Risk

Asia bid support is coming through with signs of resilience. This tactical insight outlines S&P pivot levels and the markets that are showing a...

Thomas Schroeder

KOSPI200 Index Rebalance Preview: Positioning Expected to Pick Up

The 4 forecast adds have outperformed the forecast deletes and there has been a big move in the stocks over the last month. With the review period...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)