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

<ul>
<li>The merger between SK Inc and SK Materials will officially end next Monday (December 27) with the listing of new stocks.</li>
<li>1,377,867 shares exercised appraisal rights. As a result, the number of new shares issued decreased to 3,789,032, pulling down the total shares to 74,149,329.</li>
<li>Passive flow-wise, we will likely see an outflow of about 0.15x ADTV at the close on the trading day (November 26) preceding the listing date.</li>
</ul>


The merger between SK Inc and SK Materials will officially end next Monday (December 27) with the listing of new stocks.
1,377,867 shares exercised appraisal rights. As a result, the number of new shares issued decreased to 3,789,032, pulling down the total shares to 74,149,329.
Passive flow-wise, we will likely see an outflow of about 0.15x ADTV at the close on the trading day (November 26) preceding the listing date.


SK Inc Flow Tracking for New Shares Listing on Dec 27

<ul>
<li>Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.</li>
<li>The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.</li>
<li>Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.</li>
</ul>


Shares of SK Innovation soared more than 8% today. The reason for the surge is the expectation that SK On will be listed on the NASDAQ rather than the KOSPI.
The news that KRX is preparing to restrict the recently surging practice of equity carve-out (ECO)-based listing has flowed into the local market today.
Obviously, the market has overreacted today to SK Innovation. SK On's NASDAQ listing stems from a vague expectation. So, today's stock price surge won't lead to a structural price uptrend.


SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.</li>
<li>Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.</li>
<li>Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.</li>
</ul>


It has been an interesting year and short interest has varied a lot across countries, sectors and stocks. We look at changes in Hong Kong, Japan, Korea and Taiwan.
Shorts have soared in Korea following the resumption of short selling, while short interest has increased in the other countries too.
Ping An Insurance and BYD had the biggest short covering, while China Merchants Bank saw the largest increase in shorts over the year.


Index Rebalance

<ul>
<li>There are 15 inclusions and 15 exclusions for the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the next rebalance to be implemented at the close on 9 December.</li>
<li>The inclusions were expected but there are a few surprises among the deletions as the Information Technology sector was spared at the expense of the Health Care sector.</li>
<li>Over the last couple of months, the inclusions have given up their early gains versus the deletions. With the announcement made, the inclusions could outperform over the next few weeks.</li>
</ul>


There are 15 inclusions and 15 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the next rebalance to be implemented at the close on 9 December.
The inclusions were expected but there are a few surprises among the deletions as the Information Technology sector was spared at the expense of the Health Care sector.
Over the last couple of months, the inclusions have given up their early gains versus the deletions. With the announcement made, the inclusions could outperform over the next few weeks.


KOSDAQ150 Index Rebalance: Pullback Done; Buy Adds & Sell Deletes

<ul>
<li>Attention is now being drawn on index rebalancing trading for SK Inc ahead of the trading suspension of SK Materials' stocks, which begins on November 29.</li>
<li>The KRX will apply SK Inc's increase in the number of shares on the start date of the trading suspension (November 29), not the new stock listing date (December 27).</li>
<li>Combining the above two, we should expect a passive inflow of about ₩14.4Bat the close on November 28, representing 0.30x 30-day ADTV.</li>
</ul>


Attention is now being drawn on index rebalancing trading for SK Inc ahead of the trading suspension of SK Materials' stocks, which begins on November 29.
The KRX will apply SK Inc's increase in the number of shares on the start date of the trading suspension (November 29), not the new stock listing date (December 27).
Combining the above two, we should expect a passive inflow of about ₩14.4Bat the close on November 28, representing 0.30x 30-day ADTV.


SK Inc Merger: KOSPI 200 Passive Impact at the Close on November 28

South Korea

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

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SK Inc (034730 KS)

SK Inc Flow Tracking for New Shares Listing on Dec 27

This post tracks SK Inc's flow with listing newly issued shares from the merger and discusses possible trading approaches.

Sanghyun Park

SK Innovation's 8% Price Gain Today: SK On's NASDAQ Listing?

The market has overreacted today to SK Innovation. SK On's NASDAQ listing is based on a vague expectation, and a structural price uptrend is...

Sanghyun Park

Asia: The Year in Shorts

There have been large increases and decreases in short interest on stocks across HK, Japan, Korea and Taiwan over the year. We look at the biggest...

Brian Freitas

KOSDAQ150 Index Rebalance: Pullback Done; Buy Adds & Sell Deletes

There are 15 changes for the KOSDAQ150 index in December. The impact on the deletions is larger than that on the inclusions. A long adds/short...

Brian Freitas

SK Inc Merger: KOSPI 200 Passive Impact at the Close on November 28

This post previews the passive inflow for SK Inc due to the merger with SK Materials, which is supposed to occur at the close on November 28.

Sanghyun Park

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