Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A double dose of StubWorld this week, as <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a>'s NAV discount narrowing looks to have run its course.</li>
<li>Preceding my comments on LG Copr are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


A double dose of StubWorld this week, as LG Corp (003550 KS)'s NAV discount narrowing looks to have run its course.
Preceding my comments on LG Copr are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


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.

<ul>
<li>As expected, most of the KOSPI 200 deletions, except for Bukwang Pharm, significantly outperformed the KOSPI index today.</li>
<li>Those that fit the pattern shown in the last rebalancing are CJ CGV and Bukwang. The problem, however, is that they have potential events triggering their price to fall.</li>
<li>So, I suggest paying attention to Yungjin Pharm and SK Discovery, which also have a sizable level of short interest and are expected to have stable short-coverings by end-June.</li>
</ul>


As expected, most of the KOSPI 200 deletions, except for Bukwang Pharm, significantly outperformed the KOSPI index today.
Those that fit the pattern shown in the last rebalancing are CJ CGV and Bukwang. The problem, however, is that they have potential events triggering their price to fall.
So, I suggest paying attention to Yungjin Pharm and SK Discovery, which also have a sizable level of short interest and are expected to have stable short-coverings by end-June.


Short-Covering Trend of KOSPI 200 Deletions by Month-End

<ul>
<li>Short-Selling is not possible after being deleted from the KOSPI 200. So, active short-covering for deletions is witnessed before and after the rebalancing implementation.</li>
<li>
<a href="https://www.smartkarma.com/entities/cj-cgv-co-ltd" target="_blank" data-smartkarma-citation="entities:2885:1" rel="noopener">CJ CGV (079160 KS)</a> stands out the most at this point. Its short interest is 4.10% of SO, and the short interest has increased the most over the past month.</li>
<li>The short-covering/price movement started to be observed from the end of the prior month. So, I'd consider building positions from the third week of this month.</li>
</ul>


Short-Selling is not possible after being deleted from the KOSPI 200. So, active short-covering for deletions is witnessed before and after the rebalancing implementation.

CJ CGV (079160 KS) stands out the most at this point. Its short interest is 4.10% of SO, and the short interest has increased the most over the past month.
The short-covering/price movement started to be observed from the end of the prior month. So, I'd consider building positions from the third week of this month.


KOSPI 200 Rebalancing: Trade Short Covering Event for Deletions

Myoung Shin Industrial Co.,Ltd / Event-Driven

Myoung Shin Industrial Co.,Ltd (009900 KS)

<ul>
<li>This post measures how far the rebalancing trading of passive funds is progressing at this point. This can be essential data for setting up positions close to the effective date.</li>
<li>For this purpose, each stock's net purchase data of Pension and Insurance were collected from November 25 to today (30th).</li>
<li>As we move closer to the effective date, we need to consider selecting those with the relatively slow progress of rebalancing trading among the regular rebalancing stocks.</li>
</ul>


This post measures how far the rebalancing trading of passive funds is progressing at this point. This can be essential data for setting up positions close to the effective date.
For this purpose, each stock's net purchase data of Pension and Insurance were collected from November 25 to today (30th).
As we move closer to the effective date, we need to consider selecting those with the relatively slow progress of rebalancing trading among the regular rebalancing stocks.


KOSPI 200 Rebalancing Trading Progress Checkup

<ul>
<li>KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 
</li>
<li>The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.</li>
<li>For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.</li>
</ul>


KOSPI 200 rebalancing results are out - 7 Additions: 4 (regular) + 2 (Fast Entry) + 1 (split) &amp; 7 Deletions: 6 (regular) + 1 (Fast Entry) 

The passive impact of all additions is pretty significant. In particular, Meritiz, SL, and Kakao Pay are relatively larger.
For the deletes, it is worth considering approaching these stocks as an equal-weighted basket. Since their share prices have not been significantly corrected recently.


7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

South Korea

LX Holdings Corp operates as an investment holding company. The company operates coal and mine supply business. LX Holdings also invests in combines heat and power hydroelectric plants.

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LX Holdings (383800 KS)

StubWorld: LG Corp In Unwind Territory

If you had set up the stub, unwind here. The future listing of LG CNS will only add another layer to the structure, one which will not help narrow...

David Blennerhassett

Short-Covering Trend of KOSPI 200 Deletions by Month-End

This post investigates the pattern shown in the last KOSPI 200 rebalancing for short-covering on the deletions and applies it to this rebalancing...

Sanghyun Park

KOSPI 200 Rebalancing: Trade Short Covering Event for Deletions

This post discusses the trading opportunities on the short-covering event for the deletions in the upcoming KOSPI 200 rebalancing.

Sanghyun Park

KOSPI 200 Rebalancing Trading Progress Checkup

This post measures how far the rebalancing trading of local passive funds is progressing at this point. This can be important data when we set up...

Sanghyun Park

7 Adds & 7 Deletes in KOSPI 200 Rebalancing: Passive Impact & Trade Setups

The KRX officially unveiled the results of the December rebalancing for KOSPI 200: 7 adds & 7 deletes. This post has the complete list as well as...

Sanghyun Park

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