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.

Equity Capital Markets

Korea Stock Exchange KOSPI 200 / Equity Capital Markets

<ul>
<li>The new pre-disclosure rule starting July 24th will reshape business practices. Local institutions are now preparing by launching dedicated block deal funds, targeting 40 to 80 deals annually.</li>
<li>No rule bars short-sellers from block deals post-pre-disclosure. Local institutions are planning to exploit this, anticipating sellers favoring club deals under new July rules, potentially stabilizing prices for hedge strategies.</li>
<li>Access to club deals will be crucial post-July in Korea's block deal market. Effective short-selling instruments are also vital with the ban extended until March next year.</li>
</ul>


The new pre-disclosure rule starting July 24th will reshape business practices. Local institutions are now preparing by launching dedicated block deal funds, targeting 40 to 80 deals annually.
No rule bars short-sellers from block deals post-pre-disclosure. Local institutions are planning to exploit this, anticipating sellers favoring club deals under new July rules, potentially stabilizing prices for hedge strategies.
Access to club deals will be crucial post-July in Korea's block deal market. Effective short-selling instruments are also vital with the ban extended until March next year.


Local Capital Market Movements Targeting July Implementation of Block Deal Pre-Disclosure Rule

Quantitative Researcher, MRM Research

Nico Rosti

Quantitative Researcher

MRM Research

Quantitative Research

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>After 3 weeks up in a row the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI 200</a> is ripe for a pullback. </li>
<li>The reversal is probably going to begin this coming week.</li>
<li>If the index goes higher, look at 391 resistance targets to initiate SHORT trades or to cover your LONGs.</li>
</ul>


After 3 weeks up in a row the KOSPI 200 is ripe for a pullback. 
The reversal is probably going to begin this coming week.
If the index goes higher, look at 391 resistance targets to initiate SHORT trades or to cover your LONGs.


EQD | The KOSPI 200 Is Ready to Pullback (Again)

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>There will be 6 additions and 6 deletions 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 June rebalance that will be implemented on 13 June.</li>
<li>The index committee has used a boatload of discretion in the inclusion of <a href="https://www.smartkarma.com/entities/cosmoam-t-co-ltd" target="_blank" data-smartkarma-citation="entities:10360:1" rel="noopener">CosmoAM&amp;T (005070 KS)</a> and the deletion of some of the stocks.</li>
<li>The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.</li>
</ul>


There will be 6 additions and 6 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance that will be implemented on 13 June.
The index committee has used a boatload of discretion in the inclusion of CosmoAM&amp;T (005070 KS) and the deletion of some of the stocks.
The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.


KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner

Event-Driven

Korea Stock Exchange KOSPI 200 / Event-Driven

<ul>
<li>The government will announce short selling improvements Thursday. A leaked detail includes limiting 90-day short position extensions.</li>
<li>Limiting the 90-day short position holding period may ease local investor concerns, but it could shrink the short selling market, potentially affecting overseas fund outflows.</li>
<li>Resuming short selling in early July may bring new flow patterns due to temporary distortions from mandatory repayment within 90 days and limitations on position extensions, increasing price impacts.</li>
</ul>


The government will announce short selling improvements Thursday. A leaked detail includes limiting 90-day short position extensions.
Limiting the 90-day short position holding period may ease local investor concerns, but it could shrink the short selling market, potentially affecting overseas fund outflows.
Resuming short selling in early July may bring new flow patterns due to temporary distortions from mandatory repayment within 90 days and limitations on position extensions, increasing price impacts.


Korea's Finalized Short-Selling Rules Include Limiting 90-Day Short Position Extensions

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Our base case valuation of Shift Up is target price of 95,510 won, which is 59% higher than the high end of the IPO price range (60,000 won).</li>
<li>We believe Shift Up deserves higher valuation multiples than its peers mainly due to higher sales growth, much higher operating margins, and higher ROE.</li>
<li>Since its launch in April of this year, Stellar Blade (PS console game) has ranked first in sales in eight countries, including the United States, United Kingdom, Canada, and Japan.</li>
</ul>


Our base case valuation of Shift Up is target price of 95,510 won, which is 59% higher than the high end of the IPO price range (60,000 won).
We believe Shift Up deserves higher valuation multiples than its peers mainly due to higher sales growth, much higher operating margins, and higher ROE.
Since its launch in April of this year, Stellar Blade (PS console game) has ranked first in sales in eight countries, including the United States, United Kingdom, Canada, and Japan.


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
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY)

Local Capital Market Movements Targeting July Implementation of Block Deal Pre-Disclosure Rule

This post explores how Korea's local institutions are preparing for the implementation of the block deal pre-disclosure rule in July.

Sanghyun Park

EQD | The KOSPI 200 Is Ready to Pullback (Again)

After 3 consecutive weeks of gains the KOSPI 200 is likely to perform a pullback, probably from the beginning of this coming week. Consider SHORT...

Nico Rosti

KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner

The KOSPI200 rebalance takes place at the close tomorrow. Cosmo AM&T is up ~25% since the surprise inclusion and there could be a reversal in the...

Brian Freitas

Korea's Finalized Short-Selling Rules Include Limiting 90-Day Short Position Extensions

This post investigates the finalized version of Korea's new short-selling rules, which surprisingly include limiting 90-day holding position...

Sanghyun Park

Shift Up IPO Valuation Analysis

The first day of book building for the Shift Up IPO started on Monday and it looks excellent. Many institutional investors placed orders at prices...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Local Capital Market Movements Targeting July Implementation of Block Deal Pre-Disclosure Rule

This post explores how Korea's local institutions are preparing for the implementation of the block deal pre-disclosure rule in July.

Sanghyun Park

EQD | The KOSPI 200 Is Ready to Pullback (Again)

After 3 consecutive weeks of gains the ​KOSPI 200 is likely to perform a pullback, probably from the beginning of this coming week. Consider SHORT...

Nico Rosti

KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner

The KOSPI200 rebalance takes place at the close tomorrow. Cosmo AM&T is up ~25% since the surprise inclusion and there could be a reversal in the...

Brian Freitas

Korea's Finalized Short-Selling Rules Include Limiting 90-Day Short Position Extensions

This post investigates the finalized version of Korea's new short-selling rules, which surprisingly include limiting 90-day holding position...

Sanghyun Park

Shift Up IPO Valuation Analysis

The first day of book building for the Shift Up IPO started on Monday and it looks excellent. Many institutional investors placed orders at prices...

Douglas Kim

After 3 consecutive weeks of gains the KOSPI 200 is likely to perform a pullback, probably from the beginning of this coming week. Consider SHORT...