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 are 3 stocks in Korea that could be deleted from a global index in August and that will result in large selling from passive trackers.</li>
<li>Short interest has increased in all 3 stocks since the resumption of short selling. Cumulative excess volume is higher in all stocks over the last couple of months.</li>
<li>Given the increase in shorts and positioning, there could be short covering in two of the three stocks. The third could still drop over the next couple of weeks.</li>
</ul>


There are 3 stocks in Korea that could be deleted from a global index in August and that will result in large selling from passive trackers.
Short interest has increased in all 3 stocks since the resumption of short selling. Cumulative excess volume is higher in all stocks over the last couple of months.
Given the increase in shorts and positioning, there could be short covering in two of the three stocks. The third could still drop over the next couple of weeks.


Korea: 3 Potential Index Deletions in August; Positioning Watch

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

Founded in 1962, Daishin Securities is a leading financial services provider in Korea. Daishin securities does its best to provide high quality financial service and to satisfy the various needs of investors. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>2Q revenue solid at W3.93tn, while OP came in at W11.4bn, missing consensus</li><li>Earnings growth ahead in 2H25 on seamless iPhone 17 production</li><li>Turnaround likely in 2026 with Apple lineup expansion and FC BGA-led revenue diversification</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

2Q revenue solid at W3.93tn, while OP came in at W11.4bn, missing consensusEarnings growth ahead in 2H25 on seamless iPhone 17 productionTurnaround likely in 2026 with Apple lineup expansion and FC BGA-led revenue diversificationContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

LG Innotek (011070 KS Jul 24, 2025) - 2H25 YoY Growth in Sight

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in Korea. </li>
<li>There are about 10 potential additions to the major global index mentioned by various local media accounts. LIG Nex1, Hyosung Heavy Industries, and Doosan Corp are most likely inclusion candidates. </li>
<li>There have been three companies that have been consistently mentioned in numerous local media as potential deletion candidates including LG Innotek, CJ Cheiljedang, and SKC Co. </li>
</ul>


In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in Korea. 
There are about 10 potential additions to the major global index mentioned by various local media accounts. LIG Nex1, Hyosung Heavy Industries, and Doosan Corp are most likely inclusion candidates. 
There have been three companies that have been consistently mentioned in numerous local media as potential deletion candidates including LG Innotek, CJ Cheiljedang, and SKC Co. 


Potential Adds & Deletes in a Major Global Index in August 2025 As Highlighted by Locals in Korea

<ul>
<li>The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.</li>
<li>Nearing halfway in the review period, we forecast 53 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.</li>
<li>Two potential downward migrations could be deleted from a global index in August. The new listing that is a potential LargeCap add could be added to a globalindex in September.</li>
</ul>


The review period for the September rebalance of the KOSPI Size Indices commenced on 1 June and will end on 31 August.
Nearing halfway in the review period, we forecast 53 migrating stocks. Among new listings, 1 stock could be added to LargeCap, 3 to MidCap and 1 to SmallCap.
Two potential downward migrations could be deleted from a global index in August. The new listing that is a potential LargeCap add could be added to a globalindex in September.


KOSPI Size Indices: Overlaps Between Active & Passive Flows

Event-Driven

<ul>
<li>There are 11 stocks (maybe 12) in Korea that could be deleted from a global index in February and that will result in large selling from passive trackers.</li>
<li>With announcement in a week and implementation in just over 3 weeks, there is positioning in a lot of the names.</li>
<li>With short selling still banned, positioning will not be as high as the passive selling and the stocks could still drop over the next few weeks.</li>
</ul>


There are 11 stocks (maybe 12) in Korea that could be deleted from a global index in February and that will result in large selling from passive trackers.
With announcement in a week and implementation in just over 3 weeks, there is positioning in a lot of the names.
With short selling still banned, positioning will not be as high as the passive selling and the stocks could still drop over the next few weeks.


Korea: 11 Potential Index Deletions in February

South Korea

LG Innotek Co., Ltd. develops and produces cellular phone parts such as mini vibration motors, LCD modules, light emitting diode (LED), camera modules, protection circuit modules. The Company also manufactures liquid crystal displays (LCD) and plasma display panels (PDP) parts such as inverters, intelligent power modules, multi chip modules, and tuners.

Price Gauge
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Lg Innotek (011070 KS)

Korea: 3 Potential Index Deletions in August; Positioning Watch

There could be 3 deletions in Korea. Flow varies between US$84m-US$100m and impact between 4-8x ADV. Shorts have increased, as has positioning....

Brian Freitas