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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The KRX announced the list of inclusions and exclusions to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.</p><p>There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.</p><p>The inclusions and exclusions are tabulated here.</p><table class="table table-striped">
<colgroup><col span="4"></colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 96pt;" colspan="2">INCLUSIONS</td>
<td style="text-align: center; width: 96pt;" colspan="2">EXCLUSIONS</td>
</tr>
<tr>
<td>003670.KS</td>
<td>Posco Chemical Co Ltd</td>
<td>001520.KS</td>
<td>Tongyang Inc</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F Co Ltd</td>
<td>002960.KS</td>
<td>Hankook Shell Oil Co Ltd</td>
</tr>
<tr>
<td>009410.KS</td>
<td>Taeyoung Engineering &amp; Construction Co Ltd</td>
<td>003620.KS</td>
<td>Ssangyong Motor Co Ltd</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HMM Co Ltd</td>
<td>003920.KS</td>
<td>Namyang Dairy Products Co Ltd</td>
</tr>
<tr>
<td>016380.KS</td>
<td>KG DongbuSteel Co Ltd</td>
<td>005850.KS</td>
<td>SL Corp</td>
</tr>
<tr>
<td>020560.KS</td>
<td>Asiana Airlines Inc</td>
<td>006840.KS</td>
<td>AK Holdings Inc</td>
</tr>
<tr>
<td>032350.KS</td>
<td>Lotte Tour Development Co Ltd</td>
<td>008060.KS</td>
<td>Daeduck Co Ltd</td>
</tr>
<tr>
<td>180640.KS</td>
<td>Hanjin Kal</td>
<td>025540.KS</td>
<td>Korea Electric Terminal Co Ltd</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DoubleU Games Co Ltd</td>
<td>079430.KS</td>
<td>Hyundai Livart Furniture Co Ltd</td>
</tr>
<tr>
<td>241590.KS</td>
<td>Hwaseung Enterprise Co Ltd</td>
<td>096760.KS</td>
<td>JW Holdings Corp</td>
</tr>
<tr>
<td>284740.KS</td>
<td>Cuckoo Homesys Co Ltd</td>
<td>298040.KS</td>
<td>Hyosung Heavy Industries Corp</td>
</tr>
</tbody>
</table><p>There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.</p>

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is effective as of 12 June and all passive buying/selling will be done at the closing auction on 11 June.There are 11 inclusions and 11 exclusions in the June 2020 review with an estimated one-way turnover of 0.87%.The inclusions and exclusions are tabulated here.



INCLUSIONS
EXCLUSIONS


003670.KS
Posco Chemical Co Ltd
001520.KS
Tongyang Inc


007700.KS
F&amp;F Co Ltd
002960.KS
Hankook Shell Oil Co Ltd


009410.KS
Taeyoung Engineering &amp; Construction Co Ltd
003620.KS
Ssangyong Motor Co Ltd


011200.KS
HMM Co Ltd
003920.KS
Namyang Dairy Products Co Ltd


016380.KS
KG DongbuSteel Co Ltd
005850.KS
SL Corp


020560.KS
Asiana Airlines Inc
006840.KS
AK Holdings Inc


032350.KS
Lotte Tour Development Co Ltd
008060.KS
Daeduck Co Ltd


180640.KS
Hanjin Kal
025540.KS
Korea Electric Terminal Co Ltd


192080.KS
DoubleU Games Co Ltd
079430.KS
Hyundai Livart Furniture Co Ltd


241590.KS
Hwaseung Enterprise Co Ltd
096760.KS
JW Holdings Corp


284740.KS
Cuckoo Homesys Co Ltd
298040.KS
Hyosung Heavy Industries Corp


There are 11 days trading days to implementation day and there is significant volume to trade on quite a few of the inclusions and exclusions, so there will be a fair bit of volatility and opportunities to make money.

<div><p>The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 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 KOSPI 200 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 12 stocks being added to and deleted from the index.</p>
<table class="table table-striped">
<colgroup>
<col>
<col>
<col>
<col>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="text-align: center; width: 259pt;" colspan="3">EXPECTED INCLUSIONS</td>
<td style="text-align: center; width: 214pt;" colspan="3">EXPECTED EXCLUSIONS</td>
</tr>
<tr>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
<td style="text-align: center;"><strong>Code</strong></td>
<td style="text-align: center;"><strong>Name</strong></td>
<td style="text-align: center;"><strong>Conviction</strong></td>
</tr>
<tr>
<td>003670.KS</td>
<td>POSCO CHEMICAL</td>
<td>HIGH</td>
<td>002270.KS</td>
<td>LOTTE FOOD</td>
<td>HIGH</td>
</tr>
<tr>
<td>180640.KS</td>
<td>HANJINKAL</td>
<td>HIGH</td>
<td>060980.KS</td>
<td>HALLA HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>007700.KS</td>
<td>F&amp;F</td>
<td>HIGH</td>
<td>002960.KS</td>
<td>HANKOOK SHELL OIL</td>
<td>HIGH</td>
</tr>
<tr>
<td>013890.KS</td>
<td>ZINUS</td>
<td>HIGH</td>
<td>025540.KS</td>
<td>KOR ELEC TERM</td>
<td>HIGH</td>
</tr>
<tr>
<td>011200.KS</td>
<td>HYUNDAI MERC MAR</td>
<td>HIGH</td>
<td>096760.KS</td>
<td>JW HOLDINGS</td>
<td>HIGH</td>
</tr>
<tr>
<td>020560.KS</td>
<td>ASIANA AIRLINES</td>
<td>HIGH</td>
<td>002240.KS</td>
<td>KIS WIRE</td>
<td>HIGH</td>
</tr>
<tr>
<td>009410.KS</td>
<td>TAEYOUNG E&amp;C</td>
<td>HIGH</td>
<td>001520.KS</td>
<td>TONGYANG</td>
<td>HIGH</td>
</tr>
<tr>
<td>241590.KS</td>
<td>HWASEUNG ENTERPRISE</td>
<td>HIGH</td>
<td>003920.KS</td>
<td>NAMYANG DAIRY</td>
<td>HIGH</td>
</tr>
<tr>
<td>192080.KS</td>
<td>DOUBLEUGAMES</td>
<td>HIGH</td>
<td>003620.KS</td>
<td>SSANGYONG MTR</td>
<td>HIGH</td>
</tr>
<tr>
<td>284740.KS</td>
<td>CUCKOO HOMESYS</td>
<td>HIGH</td>
<td>079430.KS</td>
<td>HYUNDAI LIVART</td>
<td>HIGH</td>
</tr>
<tr>
<td>032350.KS</td>
<td>LOTTE TOUR</td>
<td>HIGH</td>
<td>298040.KS</td>
<td>HYOSUNG HEAVY</td>
<td>HIGH</td>
</tr>
<tr>
<td>016380.KS</td>
<td>DONGBU STL</td>
<td>LOW</td>
<td>014830.KS</td>
<td>UNID</td>
<td>LOW</td>
</tr>
</tbody>
</table>
<p>The KRX also <a href="http://eindex.krx.co.kr/board/GLB0501070000/bbs#view=20348" target="_blank" rel="noopener">announced</a> that they were repealing the 30% capping rule in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" rel="noopener" data-smartkarma-citation="entities:26021:1">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a>, so there will not be any capping of <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:191:1">Samsung Electronics (005930 KS)</a> in this review or any further reviews. </p>
</div>

The Korea Exchange (KRX) will announce the results of the June 2020 review of the KOSPI 200 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 KOSPI 200 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 12 stocks being added to and deleted from the index.











EXPECTED INCLUSIONS
EXPECTED EXCLUSIONS


Code
Name
Conviction
Code
Name
Conviction


003670.KS
POSCO CHEMICAL
HIGH
002270.KS
LOTTE FOOD
HIGH


180640.KS
HANJINKAL
HIGH
060980.KS
HALLA HOLDINGS
HIGH


007700.KS
F&amp;F
HIGH
002960.KS
HANKOOK SHELL OIL
HIGH


013890.KS
ZINUS
HIGH
025540.KS
KOR ELEC TERM
HIGH


011200.KS
HYUNDAI MERC MAR
HIGH
096760.KS
JW HOLDINGS
HIGH


020560.KS
ASIANA AIRLINES
HIGH
002240.KS
KIS WIRE
HIGH


009410.KS
TAEYOUNG E&amp;C
HIGH
001520.KS
TONGYANG
HIGH


241590.KS
HWASEUNG ENTERPRISE
HIGH
003920.KS
NAMYANG DAIRY
HIGH


192080.KS
DOUBLEUGAMES
HIGH
003620.KS
SSANGYONG MTR
HIGH


284740.KS
CUCKOO HOMESYS
HIGH
079430.KS
HYUNDAI LIVART
HIGH


032350.KS
LOTTE TOUR
HIGH
298040.KS
HYOSUNG HEAVY
HIGH


016380.KS
DONGBU STL
LOW
014830.KS
UNID
LOW



The KRX also announced that they were repealing the 30% capping rule in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), so there will not be any capping of Samsung Electronics (005930 KS) in this review or any further reviews. 


KOSPI200 Rebalance Preview: The Final Cut

Quantitative Analysis

<p>After tinkering with changes to the short sell rules, the Financial Services Commission (FSC) finally imposed a ban on short selling in the KOSPI, KOSDAQ and KONEX markets for six months from 16 March to 15 September.</p><p>The FSC has also eased the current limits on stock buybacks so companies can support their stock price.</p><p>In this Insight, we look at the potential impact of the short selling rule change, and which stocks could be affected if local lenders are pressured to recall stocks that have been lent out.</p>

After tinkering with changes to the short sell rules, the Financial Services Commission (FSC) finally imposed a ban on short selling in the KOSPI, KOSDAQ and KONEX markets for six months from 16 March to 15 September.The FSC has also eased the current limits on stock buybacks so companies can support their stock price.In this Insight, we look at the potential impact of the short selling rule change, and which stocks could be affected if local lenders are pressured to recall stocks that have been lent out.

South Korea

Tongyang Inc., operates a construction business.  The Company focuses on housing and building construction and produces and supplies special cement and ready-mixed concrete.

Tongyang Inc (001520 KS)

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