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.

Event-Driven

Below is the KRX notice on April 9 concerning SK Bioscience's entry into the KRX indices.SK BIOSCIENCE (302440) will be added to the corresponding indices since it satisfies the criteria for the fast-entry rule.KRX 100
Addition: SK BIOSCIENCE (302440)
Deletion: MedyTox (086900)
Effective Date: 11th June 2021※ The KRX is now reviewing the entry into the other indices, including KOSPI 200 and KRX 300. So follow up the further notice in May.The link is here.Why not announcing now for KOSPI 200 fast entry?The nearest month KOSPI 200 futures contract that is the first to arrive after the 15 trading sessions falls on the same day as the 1H regular rebalancing.So, for SK Bioscience, the announcement will be made at the end of May with the other biannual changes.





KOSPI 200 FY2021 1H schedule

Announcement
2021-05-31


Effective
2021-06-11

Source: KRX

Entry is a done deal.The 15D daily average MC sits at ₩10.1T.





SK Bioscience in the first 15 trading sessions (₩B)

2021-04-07
₩114,500


2021-04-06
₩115,500


2021-04-05
₩118,000


2021-04-02
₩117,500


2021-04-01
₩119,000


2021-03-31
₩120,500


2021-03-30
₩126,500


2021-03-29
₩123,500


2021-03-26
₩132,000


2021-03-25
₩136,000


2021-03-24
₩136,500


2021-03-23
₩140,500


2021-03-22
₩144,000


2021-03-19
₩166,500


2021-03-18
₩169,000


- Average daily MC
10,095.5

Source: KRX

Below are the KOSPI top 50 names by the Mar 18~Apr 7 average daily MC. SK Bioscience comes in at the 32nd between Lotte Chemical and Korean Air. 








KOSPI top 50 by avg daily MC (Mar 18~Apr 7)
Ticker
MC (₩B)
Rank


Samsung Electronics Co Ltd
005930
493,866.8
1


SK Hynix Inc
000660
100,363.2
2


Naver Corp
035420
63,182.1
3


LG Chem Ltd
051910
58,270.1
4


Samsung Biologics Co Ltd
207940
48,546.7
5


Hyundai Motor Co
005380
48,324.6
6


Samsung SDI Co Ltd
006400
44,994.9
7


Kakao Corp
035720
44,168.9
8


Celltrion, Inc.
068270
38,067.6
9


Kia Corp
000270
34,201.4
10


HYUNDAI MOBIS CO., LTD.
012330
27,942.9
11


POSCO
005490
27,321.0
12


LG Electronics Inc.
066570
24,974.5
13


LG Household &amp; Healthcare Ltd
051900
24,205.6
14


Samsung C&amp;T Corp
028260
23,028.6
15


KB Financial Group Inc
105560
21,888.8
16


SK Telecom Co Ltd
017670
21,431.3
17


SK Innovation Co Ltd
096770
20,224.3
18


NCSoft Corp
036570
19,800.1
19


Shinhan Financial Group Co., Ltd.
055550
18,719.6
20


SK Inc
034730
18,545.8
21


Samsung Life Insurance co., Ltd
032830
15,486.7
22


LG Corp
003550
15,467.8
23


Korea Electric Power Corporation
015760
15,134.3
24


Amorepacific Corp
090430
14,713.7
25


Samsung SDS Co Ltd
018260
14,622.3
26


Samsung Electro-Mechanics Co., Ltd.
009150
14,254.0
27


Hana Financial Group Inc
086790
12,467.6
28


KT&amp;G Corp
033780
11,103.9
29


Netmarble Corp
251270
10,766.4
30


Lotte Chemical Corp
011170
10,366.4
31


Korean Air Lines Co Ltd
003490
9,626.9
32


Hanon Systems
018880
9,569.8
33


HMM Co Ltd
011200
9,353.6
34


Posco Chemical Co Ltd
003670
9,280.4
35


S Oil Corp
010950
9,114.8
36


Hanwha Solutions Corp
009830
8,934.8
37


Samsung Fire &amp; Marine Insurance Co Ltd
000810
8,903.8
38


Korea Shipbuilding &amp;Offshore Engn Co Ltd
009540
8,854.5
39


SK Biopharmaceuticals Co Ltd
326030
8,259.9
40


LG Display Co Ltd
034220
8,147.3
41


Korea Zinc Inc
010130
7,665.4
42


Kumho Petro Chemical Co Ltd
011780
7,310.6
43


Woori Financial Group Inc
316140
7,287.7
44


KT Corp
030200
7,182.8
45


Hyundai Glovis Co Ltd
086280
7,140.6
46


Industrial Bank of Korea
024110
6,704.6
47


CJ Cheiljedang Corp
097950
6,277.2
48


Mirae Asset Securities Co Ltd
006800
6,172.1
49


Hyundai Steel Co
004020
6,135.2
50

Source: KRX



SK Bioscience K200 Entry: Potential Trades Reflecting SK Biopharm's Passive Inflow Pattern

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<div class="content-highlight">
<p>NPS has been continuing to sell big in Korea in 2021. Having covered Korea for more than two decades, I do not remember NPS selling like it has been in the past two months. As of 28 February, NPS net sold KOSPI for <strong>42 consecutive days. </strong>It has been reported that NPS sold nearly 13 trillion won ($11.6 billion) of KOSPI since December 2020. The big selling by the NPS has become one of the biggest stories in the Korean stock market in 2021. </p>
<p>As of the end of 2020, the Korean equities accounted for<strong> 21.2%</strong> of NPS' total portfolio. <a href="https://finance.naver.com/news/news_read.nhn?article_id=0003341623&amp;office_id=020&amp;mode=LSS2D&amp;type=0&amp;section_id=101&amp;section_id2=258&amp;section_id3=&amp;date=20210302&amp;page=3" target="_blank" rel="noopener">NPS'</a> goal is to reduce this to <strong>16.8%</strong> of its total portfolio at the end of 2021. That is a big drop. In this case, NPS could sell an additional 24 trillion won ($21.4 billion) worth of Korean stocks by the end of 2021, which is nearly twice the amount of Korean stocks that it has sold in the past two months. </p>
</div>


NPS has been continuing to sell big in Korea in 2021. Having covered Korea for more than two decades, I do not remember NPS selling like it has been in the past two months. As of 28 February, NPS net sold KOSPI for 42 consecutive days. It has been reported that NPS sold nearly 13 trillion won ($11.6 billion) of KOSPI since December 2020. The big selling by the NPS has become one of the biggest stories in the Korean stock market in 2021. 
As of the end of 2020, the Korean equities accounted for 21.2% of NPS' total portfolio. NPS' goal is to reduce this to 16.8% of its total portfolio at the end of 2021. That is a big drop. In this case, NPS could sell an additional 24 trillion won ($21.4 billion) worth of Korean stocks by the end of 2021, which is nearly twice the amount of Korean stocks that it has sold in the past two months. 


NPS Is Selling Big in Korea - Will This Lead to an Underperformance of KOSPI in 2021?

Equity Capital Markets

SK Biopharmaceuticals   / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> announced after the market close today that it plans to sell a significant amount of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a> shares in a block deal (about $1 billion). The block deal price range of SK Biopharm is from 129,800 won to 134,225 won. </p><p><strong>Overall, we believe this deal is likely to be slightly positive on SK Holdings but negative on SK Biopharm. We believe that investors will be able to buy SK Biopharm shares even at lower prices than than the discounted block deal prices. This big block deal is likely to act as an ongoing OVERHANG on SK Biopharm shares in the coming months. </strong></p>

SK Holdings (034730 KS) announced after the market close today that it plans to sell a significant amount of SK Biopharmaceuticals Co Ltd (326030 KS) shares in a block deal (about $1 billion). The block deal price range of SK Biopharm is from 129,800 won to 134,225 won. Overall, we believe this deal is likely to be slightly positive on SK Holdings but negative on SK Biopharm. We believe that investors will be able to buy SK Biopharm shares even at lower prices than than the discounted block deal prices. This big block deal is likely to act as an ongoing OVERHANG on SK Biopharm shares in the coming months. 

SK Biopharm - A Block Deal Worth $1 Billion Sell Down by SK Holdings (A Big Overhang)

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a> aims to raise US$1bn via selling 11% of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals Co Ltd (326030 KS)</a>.</p><p>The shares have more than tripled since listing and the IPO lock-up just expired last month.  While the discount appears tempting overall the stock doesn't score well on our framework.</p>

SK Holdings (034730 KS) aims to raise US$1bn via selling 11% of SK Biopharmaceuticals Co Ltd (326030 KS).The shares have more than tripled since listing and the IPO lock-up just expired last month.  While the discount appears tempting overall the stock doesn't score well on our framework.

SK Biopharma Placement - Juicy Discount but the Rest Looks Iffy

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

South Korea

SK Biopharmaceuticals Co., Ltd. researches and develops new drugs. The Company develops and markets brain disorders treatment drugs, central nervous system disorders treatment drugs, and other products. SK Biopharmaceuticals markets its products worldwide.

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

SK Biopharmaceuticals (326030 KS)

SK Bioscience K200 Entry: Potential Trades Reflecting SK Biopharm's Passive Inflow Pattern

This post finds the similarities between SK Biopharm and SK Bioscience concerning the passive money inflow pattern for the KOSPI 200 fast entry.

Sanghyun Park

NPS Is Selling Big in Korea - Will This Lead to an Underperformance of KOSPI in 2021?

As of 28 February, NPS net sold KOSPI for 42 consecutive days. NPS could sell an additional 24 trillion won ($21.4 billion) worth of Korean stocks...

Douglas Kim

SK Biopharm - A Block Deal Worth $1 Billion Sell Down by SK Holdings (A Big Overhang)

SK Holdings plans to sell nearly $1 billion worth of SK Biopharm in a block deal. We believe this will act as a big overhang on SK BIopharm shares.

Douglas Kim

SK Biopharma Placement - Juicy Discount but the Rest Looks Iffy

SK Holdings (034730 KS) aims to raise US$1bn via selling 11% of SK Biopharmaceuticals Co Ltd (326030 KS). The shares have more than tripled since...

Sumeet Singh

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

The KRX has announced changes to the KRX New Deal indices that will be effective after the close of trading on 25 February. Pearl Abyss is...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)