Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We are starting to see early signs of a potential bottom on MSCI EM (EEM-US).</li>
<li>Specifically, the EEM-US has reversed topside its 6-month downtrend. If MSCI EM has indeed bottomed, we want to be buying the leaders; that is where this report comes in.</li>
<li>Specific themes include attractive opportunities in India and Thailand, and also many in Taiwan and South Korea. Attractive Sectors include Energy, Financials, Materials, and Industrials.</li>
</ul>


We are starting to see early signs of a potential bottom on MSCI EM (EEM-US).
Specifically, the EEM-US has reversed topside its 6-month downtrend. If MSCI EM has indeed bottomed, we want to be buying the leaders; that is where this report comes in.
Specific themes include attractive opportunities in India and Thailand, and also many in Taiwan and South Korea. Attractive Sectors include Energy, Financials, Materials, and Industrials.


Finding Leadership Within Emerging Markets

ESG Independent Analyst, Who's Good

Emily Jiwon Kim

ESG Independent Analyst

ASIA’S FIRST AI-DRIVEN ESG INSIGHT PROVIDER

Who's Good

Using AI technologies and public data, Who’s Good provides objective and up-to-date corporate ESG insights on Asian companies.

WHY WHO'S GOOD

* Time-sensitive: Time is the essence in finance. Artificial Intelligence (AI) can process vast amount of information in a short span of time. Our powerful algorithm offers real-time in-depth corporate ESG analysis with out compromising its quality.
* Objective: We turned to public big data and news big data as source to base our analysis on and to preserve impartiality. We leverage 350 public big data sources and 93 news data sources in Korea to uncover insights.
* Insightful: Who’s Good ESG analysis coverage extends to all listed and non-listed companies in Korea. This allows us to provide a comprehensive insight into the Korean market.
* Global approach to ESG: Our ESG research framework is built on international standards and principles including UN Global Compact, ISO 26000, ICGN and CFA Guidelines on Corporate Governance to meet the global standards.

<ul>
<li>Our analysis of 23,419 news articles on 2,699 companies reported between Jan 1 and Dec 31, 2021, reveals that a total of 623 companies had incidents related to ESG topics.</li>
<li>167 companies (83.5%) among the 200 largest listed companies (KOSPI 200) were involved in ESG incidents.</li>
<li>Of the 23,419 news articles covering ESG incidents, 17,245 were related to KOSPI 200 companies, accounting for 73.6%.</li>
</ul>


Our analysis of 23,419 news articles on 2,699 companies reported between Jan 1 and Dec 31, 2021, reveals that a total of 623 companies had incidents related to ESG topics.
167 companies (83.5%) among the 200 largest listed companies (KOSPI 200) were involved in ESG incidents.
Of the 23,419 news articles covering ESG incidents, 17,245 were related to KOSPI 200 companies, accounting for 73.6%.


News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)

Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Provide Comprehensive Analysis & Commentary

SAV Markets

SAV Markets aims to provide comprehensive analysis & commentary on foreign exchange and asset markets. The approach is multi asset as markets are typically interlinked. Cause and effect are always at work, even if those effects take time to manifest. As nothing is permanent we strive to get ahead of the curve in an ever changing world.

Korea Stock Exchange Kospi Index / Technical Analysis

<ul>
<li>The fresh break today to new trend lows on the Kospi Index forces one to identify potential supports &amp; targets </li>
<li>The chart warns of at least a test of the January 2018 high at 2,607 which is almost 6.5% below current levels</li>
<li>The more concerning target is the 200 week moving average at 2,448 – some 12% lower</li>
</ul>


The fresh break today to new trend lows on the Kospi Index forces one to identify potential supports &amp; targets 
The chart warns of at least a test of the January 2018 high at 2,607 which is almost 6.5% below current levels
The more concerning target is the 200 week moving average at 2,448 – some 12% lower


<ul>
<li>The bounce on the Kospi Index from just above 2,900 has meant that we are approaching decent levels that need to be watched carefully: </li>
<li>Despite the firmer USD in some corners , the USD has not strengthened in any meaningful way in Asia. Within thatm USDKRW looks vulnerable</li>
<li>It is thus an evolving bias that the Kospi Index in USD terms could see a 10% rally from current levels.</li>
</ul>


The bounce on the Kospi Index from just above 2,900 has meant that we are approaching decent levels that need to be watched carefully: 
Despite the firmer USD in some corners , the USD has not strengthened in any meaningful way in Asia. Within thatm USDKRW looks vulnerable
It is thus an evolving bias that the Kospi Index in USD terms could see a 10% rally from current levels.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

With ex-dividend date coming up in Korea on 29 December, we take a look at the dividend yield differential between the common and preferred shares and the discount on the preferred shares.We recommend buying preferred shares (and hedging with the common shares) with large dividend yield differentials versus the common shares and that are trading towards the bottom of their discount range versus the common. Apart from the dividend yield pickup we also expect to earn returns on the narrowing of the discount on the preferred shares.With short selling only permitted on <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-index" target="_blank" data-smartkarma-citation="entities:22911:1" rel="noopener">Korea Stock Exchange Kospi Index (KOSPI INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> constituents, shorts selling on the preferred shares is not possible since they are not eligible for index inclusion.We see attractive risk/reward for the preferred shares on <a href="https://www.smartkarma.com/entities/hyundai-motor-co" target="_blank" data-smartkarma-citation="entities:155:1" rel="noopener">Hyundai Motor Co (005380 KS)</a>, <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electro-mechanics-co" target="_blank" data-smartkarma-citation="entities:539:1" rel="noopener">Samsung Electro Mechanics Co, Ltd. (009150 KS)</a>, <a href="https://www.smartkarma.com/entities/amorepacific-group" target="_blank" data-smartkarma-citation="entities:12179:1" rel="noopener">Amorepacific Group (002790 KS)</a>, <a href="https://www.smartkarma.com/entities/s-oil-corp" target="_blank" data-smartkarma-citation="entities:1667:1" rel="noopener">S Oil Corp (010950 KS)</a>, <a href="https://www.smartkarma.com/entities/amorepacific-corp" target="_blank" data-smartkarma-citation="entities:20854:1" rel="noopener">Amorepacific Corp (090430 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-innovation-co-ltd" target="_blank" data-smartkarma-citation="entities:1268:1" rel="noopener">SK Innovation (096770 KS)</a>.

With ex-dividend date coming up in Korea on 29 December, we take a look at the dividend yield differential between the common and preferred shares and the discount on the preferred shares.We recommend buying preferred shares (and hedging with the common shares) with large dividend yield differentials versus the common shares and that are trading towards the bottom of their discount range versus the common. Apart from the dividend yield pickup we also expect to earn returns on the narrowing of the discount on the preferred shares.With short selling only permitted on Korea Stock Exchange Kospi Index (KOSPI INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) constituents, shorts selling on the preferred shares is not possible since they are not eligible for index inclusion.We see attractive risk/reward for the preferred shares on Hyundai Motor Co (005380 KS), LG Household &amp; Health Care (051900 KS), Samsung Electro Mechanics Co, Ltd. (009150 KS), Amorepacific Group (002790 KS), S Oil Corp (010950 KS), Amorepacific Corp (090430 KS), Samsung SDI (006400 KS) and SK Innovation (096770 KS). 

South Korea

The KOSPI Index is a capitalization-weighted index of all common shares on the Korean Stock Exchanges. The Index was developed with a base value of 100 as of January 4, 1980. Note: The preferred shares are excluded in calculating the KOSPI Index from June 14, 2002. 

Korea Stock Exchange Kospi Index (KOSPI INDEX)

Korea Stock Exchange Kospi Index (KOSPI INDEX)

Finding Leadership Within Emerging Markets

We are starting to see early signs of a potential bottom on $EEM. Specifically, the EEM has reversed topside its 6-month downtrend. If EEM has...

Vermilion Research

News Analysis on ESG Incidents of 2000+ South Korean Companies (2021)

Here, we present insights into a broad spectrum of ESG incidents of Korean companies in 2021, broken down into sectors, companies, and ESG topics...

Emily Jiwon Kim

Kospi Index: How Bad?

The Kospi Index has seen a break to new lows for the trend and this simple chart attempts to identify potential supports & downside targets

Shyam Devani

The Bullish Setups in South Korea

The setup on the Kospi Index and the price action on the USD in Asia (particularly USDKRW) suggests decent gains ahead in South Korea.

Shyam Devani

Korea Preferred Shares - Trade Ideas

With dividend ex-date coming up in just over 2 months, we highlight preferred shares that trade at a big discount to the common shares and at a...

Brian Freitas