Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<p>In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.</p><div class="content-highlight">
<p>This rebalance of the KOSPI 200 strategy is a type of<strong> momentum-driven strategy.</strong> The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances <strong>(up 55% on average in the past six months</strong>). </p>
<p>On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (<strong>down 6.1% on average in the past six months</strong>). </p>
</div>

In this insight, we discuss the stocks that could get included or excluded in the November 2021 KOSPI 200 rebalance. We highlight 15 stocks that could get included and 10 stocks that could get excluded in the upcoming KOSPI 200 rebalance.
This rebalance of the KOSPI 200 strategy is a type of momentum-driven strategy. The 15 stocks that we think could get included in the next KOSPI 200 rebalance have generated strong share price performances (up 55% on average in the past six months). 
On the other hand, the 10 stocks which we think could get excluded in the next KOSPI 200 rebalance (the bottom 5% of KOSPI 200 index in terms of market cap) have done much worse in terms of their share price performance (down 6.1% on average in the past six months). 


Potential Changes of KOSPI 200 Index Components in the November 2021 Rebalance

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>There could be two changes to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the September index futures expiry with <a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (1349010D KS)</a> and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> getting Fast Entry and replacing <a href="https://www.smartkarma.com/entities/lock-lock-co-ltd" target="_blank" data-smartkarma-citation="entities:4739:1" rel="noopener">Lock&amp;Lock (115390 KS)</a> and <a href="https://www.smartkarma.com/entities/jw-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:18784:1" rel="noopener">Jw Pharmaceutical (001060 KS)</a> at the close of trading on 9 September.</p><p>Then, the Korea Exchange (KRX) will announce the results of the December 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in November. The constituent changes will be effective after the close of trading on 9 December.</p><p>We see 5 potential changes at the December rebalance with <a href="https://www.smartkarma.com/entities/f-f-co-ltd-new" target="_blank" data-smartkarma-citation="entities:33479:1" rel="noopener">F&amp;F (383220 KS)</a>, <a href="https://www.smartkarma.com/entities/sl-corp" target="_blank" data-smartkarma-citation="entities:20694:1" rel="noopener">SL Corp (005850 KS)</a>, <a href="https://www.smartkarma.com/entities/geneone-life-science-inc" target="_blank" data-smartkarma-citation="entities:6549:1" rel="noopener">GeneOne Life Science Inc. (011000 KS)</a>, <a href="https://www.smartkarma.com/entities/myoung-shin-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:29698:1" rel="noopener">Myoung Shin Industrial Co.,Ltd (009900 KS)</a> and <a href="https://www.smartkarma.com/entities/hyosung-chemical-corp" target="_blank" data-smartkarma-citation="entities:27752:1" rel="noopener">Hyosung Chemical Corp (298000 KS)</a> replacing <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a>, <a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a>, <a href="https://www.smartkarma.com/entities/ilyang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:2789:1" rel="noopener">Ilyang Pharmaceutical Co., (007570 KS)</a>, <a href="https://www.smartkarma.com/entities/lx-holdings" target="_blank" data-smartkarma-citation="entities:33384:1" rel="noopener">LX Holdings (383800 KS)</a> and <a href="https://www.smartkarma.com/entities/dongwon-f-b-co-ltd" target="_blank" data-smartkarma-citation="entities:3274:1" rel="noopener">Dongwon F&amp;B (049770 KS)</a>.</p><p>The potential inclusions have been outperforming the potential exclusions and this could continue as short selling is only permitted on index constituents and as active funds position for the rebalance following excellent returns at the June rebalance.</p>

There could be two changes to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the September index futures expiry with KakaoBank (1349010D KS) and  Krafton Inc (259960 KS) getting Fast Entry and replacing Lock&amp;Lock (115390 KS) and Jw Pharmaceutical (001060 KS) at the close of trading on 9 September.Then, the Korea Exchange (KRX) will announce the results of the December 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective after the close of trading on 9 December.We see 5 potential changes at the December rebalance with F&amp;F (383220 KS), SL Corp (005850 KS), GeneOne Life Science Inc. (011000 KS), Myoung Shin Industrial Co.,Ltd (009900 KS) and Hyosung Chemical Corp (298000 KS) replacing F&amp;F Co Ltd (007700 KS), Samyang Foods (003230 KS), Ilyang Pharmaceutical Co., (007570 KS), LX Holdings (383800 KS) and Dongwon F&amp;B (049770 KS).The potential inclusions have been outperforming the potential exclusions and this could continue as short selling is only permitted on index constituents and as active funds position for the rebalance following excellent returns at the June rebalance.

KOSPI200 Index Rebalance Preview: Two Changes in September; Five in December

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.

Myoung Shin Industrial Co.,Ltd / Index Rebalance

Myoung Shin Industrial Co.,Ltd (009900 KS)

<p>Myungshin Industries is running again. Myungshin Industrial is considered a Tesla-related stock because Tesla is a major customer. As Tesla recently announced surprise earnings, the stock price of Myungshin Industrial is also moving up.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/220/951/original/1.png?1627534508" class="editor-image img-responsive" data-smartkarma-image-id="220951"></figure></section><p>In the past five trading days alone, the share price has risen more than 8%. Its current market cap has exceeded 1.7 trillion won.</p><div class="content-highlight"><p><strong>So this stock appears to offer some opportunities from an index rebalancing trading perspective as well.</strong></p></div><p>The first thing to consider is the inclusion of the KOSPI 200. In the rebalancing of last June, the stock price did not meet the market cap threshold due to the share price being drifted sideways for several months. However, in this December's rebalancing, if the current share price uptrend continues, the possibility of inclusion seems quite high.</p><p><strong>However, we can find trading opportunities in the KRX Autos sector index rebalancing, which takes place ahead of the KOSPI 200 rebalancing in December.</strong></p><p>As for KRX Autos, KODEX currently manages an ETF that tracks it, and it has recently been showing good returns, resulting in a large inflow of funds. The AUM now amounts to ₩649.0B, which isn't bad for an index containing only 17 constituents.</p><p>This is a float-adjusted market cap-weighted index with a 20% cap. Rebalancing takes place annually in September. The implementation date is the first trading day of the week following the last trading day for KOSPI 200 futures contracts. So, September 10 will be the implementation date for this year, meaning that we will see rebalancing trading at the close on September 9.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" style="width: 746px;" data-sheets-value='{"1":2,"2":"Index summary"}'>Index summary</td></tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Index name"}'>Index name</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"KRX Autos"}'>KRX Autos</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"ETF"}'>ETF</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Samsung Kodex Autos ETF"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'><div><div>Samsung Kodex Autos ETF</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"091180"}' data-sheets-formula='="091180"'>091180</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"AUM"}'><strong>AUM</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":649.04425}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[1]C[0]*R[2]C[0]/1000000000"><strong>₩649.0B</strong></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":23305}' data-sheets-numberformat='[null,4,"[$₩]#,##0",1]' data-sheets-formula='=googlefinance(R[-2]C[0], "price")'>₩23,305</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"SO"}'>SO</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":27850000}' data-sheets-numberformat='[null,2,"#,##0",1]'>27,850,000</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":17}' data-sheets-numberformat='[null,2,"#,##0",1]'>17</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Weight type"}'>Weight type</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Float-adjusted market cap"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>Float-adjusted market cap</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Cap"}'>Cap</td>
<td style="width: 465px;" data-sheets-value='{"1":3,"3":0.2}' data-sheets-numberformat='[null,3,"0.00%",1]'>20.00%</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"Annually"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'>Annually</td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing month"}'><strong>Rebalancing month</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"September"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><strong>September</strong></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Announcement date"}'><strong>Announcement date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"One week ahead of implementation"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>One week ahead of implementation</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Implementation date"}'><strong>Implementation date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The first trading day of the week following the last trading day for KOSPI 200 futures contracts"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>The first trading day of the week following the last trading day for KOSPI 200 futures contracts</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Next implementation date"}'><strong>Next implementation date</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"September 10, 2021"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>September 10, 2021</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Rebalancing trading"}'><strong>Rebalancing trading</strong></td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"At the close on September 9, 2021"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div><strong>At the close on September 9, 2021</strong></div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Screening base date"}'>Screening base date</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The last trading day of the month preceding the date of regular rebalancing</div></div></td>
</tr>
<tr>
<td style="width: 281px;" data-sheets-value='{"1":2,"2":"Screening period"}'>Screening period</td>
<td style="width: 465px;" data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]'><div><div>The three months preceding the screening base date</div></div></td>
</tr>
<tr><td colspan="2" style="width: 746px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; KODEX ETF"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=PDF!R[-1]C[0]">Source: KRX &amp; KODEX ETF</td></tr>
</tbody>
</table>

Myungshin Industries is running again. Myungshin Industrial is considered a Tesla-related stock because Tesla is a major customer. As Tesla recently announced surprise earnings, the stock price of Myungshin Industrial is also moving up.In the past five trading days alone, the share price has risen more than 8%. Its current market cap has exceeded 1.7 trillion won.So this stock appears to offer some opportunities from an index rebalancing trading perspective as well.The first thing to consider is the inclusion of the KOSPI 200. In the rebalancing of last June, the stock price did not meet the market cap threshold due to the share price being drifted sideways for several months. However, in this December's rebalancing, if the current share price uptrend continues, the possibility of inclusion seems quite high.However, we can find trading opportunities in the KRX Autos sector index rebalancing, which takes place ahead of the KOSPI 200 rebalancing in December.As for KRX Autos, KODEX currently manages an ETF that tracks it, and it has recently been showing good returns, resulting in a large inflow of funds. The AUM now amounts to ₩649.0B, which isn't bad for an index containing only 17 constituents.This is a float-adjusted market cap-weighted index with a 20% cap. Rebalancing takes place annually in September. The implementation date is the first trading day of the week following the last trading day for KOSPI 200 futures contracts. So, September 10 will be the implementation date for this year, meaning that we will see rebalancing trading at the close on September 9.





Index summary

Index name
KRX Autos


ETF
Samsung Kodex Autos ETF


Ticker
091180


AUM
₩649.0B


Price
₩23,305


SO
27,850,000


Number of constituents
17


Weight type
Float-adjusted market cap


Cap
20.00%


Rebalancing cycle
Annually


Rebalancing month
September


Announcement date
One week ahead of implementation


Implementation date
The first trading day of the week following the last trading day for KOSPI 200 futures contracts


Next implementation date
September 10, 2021


Rebalancing trading
At the close on September 9, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing


Screening period
The three months preceding the screening base date

Source: KRX &amp; KODEX ETF



KRX Autos Rebalancing on September 9: Watch Myoungshin Industrial as a New Add

<p>KOSPI 200 index review period, November 1 to April 30, is now completed. </p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"KOSPI 200 Index"}'>KOSPI 200 Index</td></tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="width: 401.818px;" data-sheets-value='{"1":2,"2":"KRX:KOSPI200"}'>KRX: KOSPI200</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Rebalancing"}'>Rebalancing</td>
<td style="width: 401.818px;" data-sheets-value='{"1":2,"2":"Biannually"}'>Biannually</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Effective date"}'><strong>Effective date</strong></td>
<td style="width: 401.818px;" data-sheets-value='{"1":2,"2":"June 11, 2021 - next trading day of 2nd Thursday of June &amp; December"}'><strong>June 11, 2021 - next trading day of 2nd Thursday of June &amp; December</strong></td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Review period"}'><strong>Review period</strong></td>
<td style="width: 401.818px;" data-sheets-value='{"1":2,"2":"November 1, 2020 to April 30, 2021"}'><strong>November 1, 2020 - April 30, 2021</strong></td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Est. total mirroring funds"}'>Est. total mirroring funds</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":60000}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>60,000.00</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Total float-adj market cap (₩B)"}'><strong>Total float-adj market cap (₩B)</strong></td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":1249756.4}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'><strong>1,249,756.40</strong></td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"- Average"}'>- Average</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":6217.7}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>6,217.70</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"- Highest"}'>- Highest</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":384364.4}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>384,364.40</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"- Lowest"}'>- Lowest</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":111}'>111</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"- Median"}'>- Median</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":1458.5}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'>1,458.50</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"- Top 10 largest"}'>- Top 10 largest</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":0.5732}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>57.32%</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":422.36}'>422.36</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"52W high (January 25, 2021)"}'>52W high (January 25, 2021)</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":437.3}'>437.3</td>
</tr>
<tr>
<td style="width: 300.909px;" data-sheets-value='{"1":2,"2":"52W low (May 4, 2020)"}'>52W low (May 4, 2020)</td>
<td style="width: 401.818px;" data-sheets-value='{"1":3,"3":250.6}'>250.6</td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p><strong>Screening rules are as follows:</strong></p><ol>
<li>Select candidates for each sector in order by the <strong>cumulative average daily market cap</strong> (the cumulative cut-off at the <strong>15th percentile</strong>). Include the first company that crosses the 15th percentile mark.</li>
<li>Exclude those whose cumulative <strong>average daily trading value </strong>is below the <strong>15th percentile</strong>. Also, exclude those new entrants whose <strong>average daily market cap ranking</strong> is above 110%.</li>
<li>If not reach a full 200 members in the first and second screenings, then <strong>re-select the current constituents whose average daily market cap ranking is within 110%</strong>.</li>
<li>Select additional names <strong>among the unselected current constituents</strong> by the <strong>average daily market cap</strong> regardless of classification.</li>
</ol>

KOSPI 200 index review period, November 1 to April 30, is now completed. 





KOSPI 200 Index

Ticker
KRX: KOSPI200


Rebalancing
Biannually


Effective date
June 11, 2021 - next trading day of 2nd Thursday of June &amp; December


Review period
November 1, 2020 - April 30, 2021


Est. total mirroring funds
60,000.00


Total float-adj market cap (₩B)
1,249,756.40


- Average
6,217.70


- Highest
384,364.40


- Lowest
111


- Median
1,458.50


- Top 10 largest
57.32%


Current
422.36


52W high (January 25, 2021)
437.3


52W low (May 4, 2020)
250.6

Source: KRX

Screening rules are as follows:
Select candidates for each sector in order by the cumulative average daily market cap (the cumulative cut-off at the 15th percentile). Include the first company that crosses the 15th percentile mark.
Exclude those whose cumulative average daily trading value is below the 15th percentile. Also, exclude those new entrants whose average daily market cap ranking is above 110%.
If not reach a full 200 members in the first and second screenings, then re-select the current constituents whose average daily market cap ranking is within 110%.
Select additional names among the unselected current constituents by the average daily market cap regardless of classification.


KOSPI 200 Review Period Completed: Early Phase Long Short Trade

<p>We should expect more changes than usual in the upcoming KOSPI 200 index review.</p><p>The KRX confirmed that</p><ul>
<li>The original company of F&amp;F (007700) will remain in KOSPI 200</li>
<li>The original company of LG (003550) will remain in KOSPI200</li>
<li><strong>The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200</strong></li>
</ul><p><strong>SK Bioscience (302440) must have secured a fast entry</strong>, although the KRX has yet to announce it officially.</p><p>During the review period (November 1-April 23, <em>yes, we still have 5 more days to go</em>), the daily average market cap spits out 6 names for potential addition.</p><p>Thus, we have 8 potential additions, which I believe have a 90% probability.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Additions - inflow (₩B)"}'>Potential additions (₩B)</td>
<td style="text-align: right; width: 116.364px;">Type</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung Advanced Materials Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Hyosung Advanced Materials Corp</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298050}' data-sheets-formula="='1st'!R[24]C[0]">298050</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1859.17842}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,859.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1028.869337628}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,028.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Taihan Electric Wire Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Taihan Electric Wire Co Ltd</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"001440"}' data-sheets-formula="='1st'!R[71]C[0]">001440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1019.20288071}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,019.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":457.112491998435}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">457.1</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"TY Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>TY Holdings Co Ltd</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":363280}' data-sheets-formula="='1st'!R[71]C[0]">363280</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1112.7537355}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,112.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":530.3384303393}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">530.3</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung TNC Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Hyosung TNC Corp</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298020}' data-sheets-formula="='1st'!R[95]C[0]">298020</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":3215.467726}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>3,215.5</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1794.8740846532}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,794.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Myoung Shin Industrial Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Myoung Shin Industrial Co Ltd</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"009900"}' data-sheets-formula="='1st'!R[96]C[0]">009900</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1190.750304}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,190.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":437.71981175039997}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">437.7</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Dongwon Industries Co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Dongwon Industries Co., Ltd</strong></td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"006040"}' data-sheets-formula="='1st'!R[128]C[0]">006040</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":961.7031215}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>961.7</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":283.22156928174996}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">283.2</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK Bioscience Co Ltd</strong></td>
<td style="text-align: right; width: 116.364px;">Fast-entry</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-formula='="302440"'>302440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":11513.25}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>11,513.3</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":2953.1486250000003}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">2,953.1</td>
</tr>
<tr>
<td style="width: 262.727px;"><strong>LX Holdings </strong></td>
<td style="text-align: right; width: 116.364px;">Spin-off</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 98.1818px;">-</td>
</tr>
<tr><td colspan="5" style="width: 262.727px;">Source: KRX</td></tr>
</tbody>
</table><p>To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Deletions - outflow (₩B)"}'>Potential deletions (₩B)</td>
<td style="text-align: right; width: 130px;">Type</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Tae Young Engineering&amp;Constructin Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Tae Young Engineering&amp;Constructin Co Ltd</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"009410"}' data-sheets-formula="='2nd S'!R[-40]C[0]">009410</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":490.1286348}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>490.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":246.63272903136}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">246.6</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Namsun Aluminum Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Namsun Aluminum Co Ltd</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"008350"}' data-sheets-formula="='2nd S'!R[-40]C[0]">008350</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":424.74039195}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>424.7</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":347.94732908544}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">347.9</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Binggrae Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Binggrae Co Ltd</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"005180"}' data-sheets-formula="='2nd S'!R[-40]C[0]">005180</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":633.4347963}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>633.4</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":309.49624147218}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">309.5</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Hanil Hyundai Cement Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Hanil Hyundai Cement Co Ltd</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"006390"}' data-sheets-formula="='2nd S'!R[-40]C[0]">006390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":697.2424705}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>697.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":109.81568910374999}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">109.8</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Samyang Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Samyang Corp</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":145990}' data-sheets-formula="='2nd S'!R[-40]C[0]">145990</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":627.0576992}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>627.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":184.04143471519998}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">184.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Lock&amp;Lock Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>Lock&amp;Lock Co Ltd</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":115390}' data-sheets-formula="='2nd S'!R[-40]C[0]">115390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":832.2199166}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>832.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":251.99619074648}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">252.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"LG HAUSYS, LTD."}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>LG HAUSYS, LTD.</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":108670}' data-sheets-formula="='2nd S'!R[-40]C[0]">108670</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":782.877591}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>782.9</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":518.6564040375}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">518.7</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"JW Pharmaceutical Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'><strong>JW Pharmaceutical Corp</strong></td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"001060"}' data-sheets-formula="='2nd S'!R[-40]C[0]">001060</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":651.5827615}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>651.6</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":364.4953967831}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">364.5</td>
</tr>
<tr><td colspan="5" style="width: 720.909px;">Source: KRX</td></tr>
</tbody>
</table><hr><div class="content-highlight"><p><em><strong>SK IE Technology</strong> also has a decent shot to a fast entry. If that happens, <strong>KEPCO Engineering &amp; Construction (052690)</strong> will be a likely deletion.</em></p></div>

We should expect more changes than usual in the upcoming KOSPI 200 index review.The KRX confirmed that
The original company of F&amp;F (007700) will remain in KOSPI 200
The original company of LG (003550) will remain in KOSPI200
The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200
SK Bioscience (302440) must have secured a fast entry, although the KRX has yet to announce it officially.During the review period (November 1-April 23, yes, we still have 5 more days to go), the daily average market cap spits out 6 names for potential addition.Thus, we have 8 potential additions, which I believe have a 90% probability.








Potential additions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Hyosung Advanced Materials Corp
Regular review
298050
1,859.2
1,028.9


Taihan Electric Wire Co Ltd
Regular review
001440
1,019.2
457.1


TY Holdings Co Ltd
Regular review
363280
1,112.8
530.3


Hyosung TNC Corp
Regular review
298020
3,215.5
1,794.9


Myoung Shin Industrial Co Ltd
Regular review
009900
1,190.8
437.7


Dongwon Industries Co., Ltd
Regular review
006040
961.7
283.2


SK Bioscience Co Ltd
Fast-entry
302440
11,513.3
2,953.1


LX Holdings 
Spin-off
-
-
-

Source: KRX

To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.








Potential deletions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Tae Young Engineering&amp;Constructin Co Ltd
Regular review
009410
490.1
246.6


Namsun Aluminum Co Ltd
Regular review
008350
424.7
347.9


Binggrae Co Ltd
Regular review
005180
633.4
309.5


Hanil Hyundai Cement Co Ltd
Regular review
006390
697.2
109.8


Samyang Corp
Regular review
145990
627.1
184.0


Lock&amp;Lock Co Ltd
Regular review
115390
832.2
252.0


LG HAUSYS, LTD.
Regular review
108670
782.9
518.7


JW Pharmaceutical Corp
Regular review
001060
651.6
364.5

Source: KRX

SK IE Technology also has a decent shot to a fast entry. If that happens, KEPCO Engineering &amp; Construction (052690) will be a likely deletion.

KOSPI 200 Index Review: Likely Changes Incl. Spinoff & Fast Entry & Stock in Early Trading

South Korea

Myoung Shin Industrial Co.,Ltd produces and sells auto parts. The Company provides hot stamping parts designing, manufacturing, sales and other services. Myoung Shin Industrial markets its products throughout Korea

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Myoung Shin Industrial Co.,Ltd (009900 KS)

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Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)