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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.</p><p>The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.</p><p>All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.</p><div><p><a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> replaces <a href="https://www.smartkarma.com/entities/pearl-abyss-corp" target="_blank" data-smartkarma-citation="entities:24391:1" rel="noopener">Pearl Abyss (263750 KS)</a> in the BBIG Index.</p></div><div><p>In the Secondary Battery index, <a href="https://www.smartkarma.com/entities/soulbrain-co-ltd" target="_blank" data-smartkarma-citation="entities:16883:1" rel="noopener">Soulbrain (036830 KS)</a> and <a href="https://www.smartkarma.com/entities/l-f-co-ltd" target="_blank" data-smartkarma-citation="entities:14300:1" rel="noopener">L&amp;F Co Ltd (066970 KS)</a> replace <a href="https://www.smartkarma.com/entities/doosan-solus-co-ltd" target="_blank" data-smartkarma-citation="entities:28947:1" rel="noopener">Doosan Solus Co Ltd (336370 KS)</a> and <a href="https://www.smartkarma.com/entities/foosung-co-ltd" target="_blank" data-smartkarma-citation="entities:16811:1" rel="noopener">Foosung Co Ltd (093370 KS)</a>.</p></div><div><p>In the Biotech index, <a href="https://www.smartkarma.com/entities/shinpoong-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7296:1" rel="noopener">Shinpoong Pharmaceutical (019170 KS)</a> and <a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> replace <a href="https://www.smartkarma.com/entities/alteogen-inc" target="_blank" data-smartkarma-citation="entities:15886:1" rel="noopener">Alteogen Inc (196170 KS)</a> and <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a>.</p></div><div><p>In the Internet index, <a href="https://www.smartkarma.com/entities/ace-technologies-corp" target="_blank" data-smartkarma-citation="entities:7868:1" rel="noopener">Ace Technologies (088800 KS)</a> and <a href="https://www.smartkarma.com/entities/rsupport-co-ltd" target="_blank" data-smartkarma-citation="entities:14783:1" rel="noopener">Rsupport Co Ltd (131370 KS)</a> replace <a href="https://www.smartkarma.com/entities/kg-inicis-co-ltd" target="_blank" data-smartkarma-citation="entities:5234:1" rel="noopener">KG Inicis Co Ltd (035600 KS)</a> and <a href="https://www.smartkarma.com/entities/ubiquoss-inc" target="_blank" data-smartkarma-citation="entities:14341:1" rel="noopener">Ubiquoss Holding (078070 KS)</a>.</p></div><div><p>In the Gaming index, <a href="https://www.smartkarma.com/entities/kakao-games-corp" target="_blank" data-smartkarma-citation="entities:26730:1" rel="noopener">Kakao Games Corp (293490 KS)</a> and <a href="https://www.smartkarma.com/entities/neptune-company" target="_blank" data-smartkarma-citation="entities:28826:1" rel="noopener">Neptune Company (217270 KS)</a> replace <a href="https://www.smartkarma.com/entities/neowiz-games-corp" target="_blank" data-smartkarma-citation="entities:12425:1" rel="noopener">Neowiz Games (095660 KS)</a> and Golfzon (215000 KS).</p></div>

The Korea Exchange (KRX) launched 5 indices last year following the New Deal initiative that the Government launched to digitalise social infrastructure and jumpstart the transition to green energy.The KRX created 4 indices tracking the Secondary Battery, Biotech, Internet and Gaming sectors that are expected to benefit from the New Deal initiative plus an additional index (BBIG) that includes the top 3 stocks from each sector.All indices have performed well since then. The KRX announced changes to the 5 indices late last week and the changes become effective post the close of trading on 25 February.Kakao Games Corp (293490 KS) replaces Pearl Abyss (263750 KS) in the BBIG Index.In the Secondary Battery index, Soulbrain (036830 KS) and L&amp;F Co Ltd (066970 KS) replace Doosan Solus Co Ltd (336370 KS) and Foosung Co Ltd (093370 KS).In the Biotech index, Shinpoong Pharmaceutical (019170 KS) and Green Cross (006280 KS) replace Alteogen Inc (196170 KS) and Hanmi Pharm (128940 KS).In the Internet index, Ace Technologies (088800 KS) and Rsupport Co Ltd (131370 KS) replace KG Inicis Co Ltd (035600 KS) and Ubiquoss Holding (078070 KS).In the Gaming index, Kakao Games Corp (293490 KS) and Neptune Company (217270 KS) replace Neowiz Games (095660 KS) and Golfzon (215000 KS).

KRX BBIG K-NewDeal Index Rebalance: First Set of Changes Announced

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<p>In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to announce the KOSPI 200 and KOSDAQ 150 rebalanced stocks at the end of May and the changed KOSPI 200 and KOSDAQ 150 indices will be effective starting 12 June.</p><p>We have broken down the potential inclusions into KOSPI 200 KOSDAQ 150 into 3 major categories including the following:</p><ul>
<li>Share price performances YTD</li>
<li>Market Cap</li>
<li>Operating Profit Growth Momentum</li>
</ul><div class="content-highlight">
<p><strong>Combining all of these three factors, the top five companies in our list including Zinus, Hwa Sung Enterprises, F&amp;F, Cuckoo Homesys, POSCO Chemtech, and Cuckoo Homesys </strong><strong>are the ones that not only are potential inclusions in KOSPI 200 but also those that can potentially outperform the market after being included in KOSPI 200. </strong></p>
<p><strong>Combining all of these three factors, the top five companies in our list including ITM Semiconductor, Cowintech, Daou Data Corp, Ebest Investment &amp; Securities, and Neowiz Games are the ones that not only are potential inclusions in KOSDAQ 150 but also those that can potentially outperform the market after being included in KOSDAQ 150.  </strong></p>
</div>

In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to announce the KOSPI 200 and KOSDAQ 150 rebalanced stocks at the end of May and the changed KOSPI 200 and KOSDAQ 150 indices will be effective starting 12 June.We have broken down the potential inclusions into KOSPI 200 KOSDAQ 150 into 3 major categories including the following:
Share price performances YTD
Market Cap
Operating Profit Growth Momentum

Combining all of these three factors, the top five companies in our list including Zinus, Hwa Sung Enterprises, F&amp;F, Cuckoo Homesys, POSCO Chemtech, and Cuckoo Homesys are the ones that not only are potential inclusions in KOSPI 200 but also those that can potentially outperform the market after being included in KOSPI 200. 
Combining all of these three factors, the top five companies in our list including ITM Semiconductor, Cowintech, Daou Data Corp, Ebest Investment &amp; Securities, and Neowiz Games are the ones that not only are potential inclusions in KOSDAQ 150 but also those that can potentially outperform the market after being included in KOSDAQ 150.  


KOSPI 200 & KOSDAQ 150 Rebalancing in June Update

Event-Driven

<div><p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ150 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.</p></div><div><p>In this Insight we look at the KOSDAQ150 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.</p></div><div>
<p>Following the completion of the review period on 29 April, we see between 10 to 13 stocks being added to and deleted from the index. This is the first rebalance where stocks from the Financial sector are eligible for inclusion in the KOSDAQ150 index, and the index committee may include them even though they do not meet all criteria for inclusion.</p>
<table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 216pt;" colspan="3">EXPECTED INCLUSIONS</td>
<td style="text-align: center; width: 209pt;" colspan="3">EXPECTED EXCLUSIONS</td>
</tr>
<tr>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
<td><strong>Conviction</strong></td>
<td><strong>Code</strong></td>
<td><strong>Name</strong></td>
<td><strong>Conviction</strong></td>
</tr>
<tr>
<td>084850.KQ</td>
<td>ITM Semiconductor</td>
<td>HIGH</td>
<td>041830.KQ</td>
<td>InBody</td>
<td>HIGH</td>
</tr>
<tr>
<td>085660.KQ</td>
<td>CHA Biotech</td>
<td>HIGH</td>
<td>089600.KQ</td>
<td>Nasmedia</td>
<td>HIGH</td>
</tr>
<tr>
<td>268600.KQ</td>
<td>Cellivery</td>
<td>HIGH</td>
<td>049950.KQ</td>
<td>meerecompany</td>
<td>HIGH</td>
</tr>
<tr>
<td>060720.KQ</td>
<td>KH VATEC</td>
<td>HIGH</td>
<td>041140.KQ</td>
<td>Nexon GT</td>
<td>HIGH</td>
</tr>
<tr>
<td>095660.KQ</td>
<td>NEOWIZ</td>
<td>HIGH</td>
<td>036630.KQ</td>
<td>SEJONG TELECOM</td>
<td>HIGH</td>
</tr>
<tr>
<td>018290.KQ</td>
<td>VT GMP</td>
<td>HIGH</td>
<td>215360.KQ</td>
<td>W.I.C</td>
<td>HIGH</td>
</tr>
<tr>
<td>052260.KQ</td>
<td>SKbioland</td>
<td>HIGH</td>
<td>217730.KQ</td>
<td>KANGSTEM BIOTECH</td>
<td>HIGH</td>
</tr>
<tr>
<td>151910.KQ</td>
<td>NANOS</td>
<td>MEDIUM</td>
<td>044490.KQ</td>
<td>TAEWOONG</td>
<td>HIGH</td>
</tr>
<tr>
<td>282880.KQ</td>
<td>COWIN</td>
<td>MEDIUM</td>
<td>095190.KQ</td>
<td>EMKOREA</td>
<td>HIGH</td>
</tr>
<tr>
<td>125210.KQ</td>
<td>AMOGREENTECH</td>
<td>MEDIUM</td>
<td>222040.KQ</td>
<td>COSMAX NBT</td>
<td>HIGH</td>
</tr>
<tr>
<td>078070.KQ</td>
<td>Ubiquoss Holdings Inc</td>
<td>MEDIUM</td>
<td>047310.KQ</td>
<td>POWER LOGICS</td>
<td>LOW</td>
</tr>
<tr>
<td>038540.KQ</td>
<td>Sangsangin Co Ltd</td>
<td>MEDIUM</td>
<td>052020.KQ</td>
<td>STCUBE</td>
<td>LOW</td>
</tr>
<tr>
<td>032190.KQ</td>
<td>Daou Data Corp</td>
<td>MEDIUM</td>
<td>192440.KQ</td>
<td>Spigen Korea</td>
<td>LOW</td>
</tr>
</tbody>
</table>
<p>There have been multiple changes in the KOSDAQ150 index over the last couple of months due to constituent stocks being classified as 'Investment Attention Issues' making them ineligible to remain in the index.</p>
</div>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ150 in the second half of May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.In this Insight we look at the KOSDAQ150 index methodology, the historical performance of inclusions vs exclusions, at the expected candidates for inclusion/exclusion in this review and some of the details around the names.
Following the completion of the review period on 29 April, we see between 10 to 13 stocks being added to and deleted from the index. This is the first rebalance where stocks from the Financial sector are eligible for inclusion in the KOSDAQ150 index, and the index committee may include them even though they do not meet all criteria for inclusion.











EXPECTED INCLUSIONS
EXPECTED EXCLUSIONS


Code
Name
Conviction
Code
Name
Conviction


084850.KQ
ITM Semiconductor
HIGH
041830.KQ
InBody
HIGH


085660.KQ
CHA Biotech
HIGH
089600.KQ
Nasmedia
HIGH


268600.KQ
Cellivery
HIGH
049950.KQ
meerecompany
HIGH


060720.KQ
KH VATEC
HIGH
041140.KQ
Nexon GT
HIGH


095660.KQ
NEOWIZ
HIGH
036630.KQ
SEJONG TELECOM
HIGH


018290.KQ
VT GMP
HIGH
215360.KQ
W.I.C
HIGH


052260.KQ
SKbioland
HIGH
217730.KQ
KANGSTEM BIOTECH
HIGH


151910.KQ
NANOS
MEDIUM
044490.KQ
TAEWOONG
HIGH


282880.KQ
COWIN
MEDIUM
095190.KQ
EMKOREA
HIGH


125210.KQ
AMOGREENTECH
MEDIUM
222040.KQ
COSMAX NBT
HIGH


078070.KQ
Ubiquoss Holdings Inc
MEDIUM
047310.KQ
POWER LOGICS
LOW


038540.KQ
Sangsangin Co Ltd
MEDIUM
052020.KQ
STCUBE
LOW


032190.KQ
Daou Data Corp
MEDIUM
192440.KQ
Spigen Korea
LOW



There have been multiple changes in the KOSDAQ150 index over the last couple of months due to constituent stocks being classified as 'Investment Attention Issues' making them ineligible to remain in the index.


KOSDAQ150 Rebalance Preview: The Final Cut

<p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ 150 index in May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.</p><p>There have been quite a few ad hoc changes since we published our last Insight and the list of potential inclusions and exclusions has consequently changed. Some of the ad hoc changes incorporated names from our list of inclusions and exclusions.</p><p>We currently see 11 inclusions and exclusions in the KOSDAQ150 in the upcoming review and the high conviction inclusions continue to outperform the high conviction exclusions.</p>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ 150 index in May. The constituent changes will be effective from 12 June 2020 and the rebalancing trades will need to be done at the closing auction on 11 June 2020.There have been quite a few ad hoc changes since we published our last Insight and the list of potential inclusions and exclusions has consequently changed. Some of the ad hoc changes incorporated names from our list of inclusions and exclusions.We currently see 11 inclusions and exclusions in the KOSDAQ150 in the upcoming review and the high conviction inclusions continue to outperform the high conviction exclusions.

KOSDAQ150 Rebalance Preview - Strong Performance Despite Market Volatility

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Thematic (Sector/Industry)

<p><em>Netmarble Games is said to have joined the bid for "Playtika". This deal is believed to go as high as USD4bil. Netmarble already submitted a LOI. Playtika is expected to select the preferred bidder within this month.</em></p><p>Playtika is a SNS based gambling game company that currently offers a variety of casino-related mobile games. It is headquartered in Israel and was acquired by Caesars Entertainment Corp. at USD100mil in 2011.</p><p>Surely, Playtika is one of the hottest game companies in the world with…</p>

Netmarble Games is said to have joined the bid for "Playtika". This deal is believed to go as high as USD4bil. Netmarble already submitted a LOI. Playtika is expected to select the preferred bidder within this month.Playtika is a SNS based gambling game company that currently offers a variety of casino-related mobile games. It is headquartered in Israel and was acquired by Caesars Entertainment Corp. at USD100mil in 2011.Surely, Playtika is one of the hottest game companies in the world with…

Playtika Deal for Netmarble: Timely Move for IPO

South Korea

Neowiz offers online games application services.  The company offers variety types of online games such as action and sports games.

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Neowiz (095660 KS)

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Brian Freitas

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In this insight, we provide additional insights regarding the upcoming KOSPI 200 and KOSDAQ 150 rebalancing. According to the KRX, it plans to...

Douglas Kim

KOSDAQ150 Rebalance Preview: The Final Cut

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ150 in the second half of May. The constituent changes will...

Brian Freitas

KOSDAQ150 Rebalance Preview - Strong Performance Despite Market Volatility

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSDAQ 150 index in May. The constituent changes will be...

Brian Freitas

Playtika Deal for Netmarble: Timely Move for IPO

Netmarble Games is said to have joined the bid for "Playtika". This deal is believed to go as high as USD4bil. Netmarble already submitted a LOI....

Sanghyun Park

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