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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Shinpoong Pharmaceutical / Index Rebalance

<p>The Korea Exchange (KRX) will announce the results of the December 2020 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 from the open on 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.</p><p>At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. There could be an additional change with <a href="https://www.smartkarma.com/entities/big-hit-entertainment" target="_blank" data-smartkarma-citation="entities:28959:1" rel="noopener">Big Hit Entertainment (352820 KS)</a> getting index inclusion as a Fast Entry - this change could be announced ahead of the regular review announcement or as a part of the regular announcement, though the implementation will be at the same time as the December review.</p><p>The potential inclusions have outperformed the potential exclusions by a wide margin over the last 6 months though the performance has been subdued over the last 2 months. With the short sell ban still in force, we could see the potential inclusions continue to outperform the potential exclusions after this period of consolidation, especially once the announcement of the changes has been made.</p><p>In the Insight, we look at the expected changes, the impact of the changes on the stocks, the performance of the stocks and the short interest, the behaviour of the inclusions/exclusions at the June review and recommend some trades going forward.</p>

The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective from the open on 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. There could be an additional change with Big Hit Entertainment (352820 KS) getting index inclusion as a Fast Entry - this change could be announced ahead of the regular review announcement or as a part of the regular announcement, though the implementation will be at the same time as the December review.The potential inclusions have outperformed the potential exclusions by a wide margin over the last 6 months though the performance has been subdued over the last 2 months. With the short sell ban still in force, we could see the potential inclusions continue to outperform the potential exclusions after this period of consolidation, especially once the announcement of the changes has been made.In the Insight, we look at the expected changes, the impact of the changes on the stocks, the performance of the stocks and the short interest, the behaviour of the inclusions/exclusions at the June review and recommend some trades going forward.

KOSPI200 Index Rebalance Preview: Review Period Nearly Complete, Nine (Or Ten) Possible Changes

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Event-Driven

<p>KOSPI 200 biannual rebalancing is coming. This year, it will be December 11, 2020.</p><p>It will be the first time that the KRX does a KOSPI 200 rebalancing biannually in December.</p><p>Due to the current market condition (high fluctuations), we will likely see a higher number of changes than usual.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Status"}'>Status</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Index"}'>Index</td>
<td style="text-align: right;" data-sheets-formula='=googlefinance(R[1]C[0], "name")' data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}' data-sheets-value='{"1":2,"2":"KOSPI 200 Index"}'>KOSPI 200 Index</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-formula='="KRX:KOSPI200"' data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}' data-sheets-value='{"1":2,"2":"KRX:KOSPI200"}'>KOSPI200</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Date"}'>Date</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}' data-sheets-value='{"1":3,"3":44099}'>September 25, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Rebalancing"}'>Rebalancing</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-value='{"1":2,"2":"Biannually"}'>Biannually</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Effective date"}'>- Effective date</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-value='{"1":2,"2":"Next trading day of 2nd Thursday of June &amp; December"}'>Next trading day of 2nd Thursday of June &amp; December</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - June"}'>- June</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}' data-sheets-value='{"1":3,"3":43994}'>June 12, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - December"}'>- December</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":5,"2":"mmmm d, yyyy","3":1}' data-sheets-value='{"1":3,"3":44176}'>December 11, 2020</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0"}' data-sheets-value='{"1":3,"3":200}'>200</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Est. total mirroring funds"}'>Est. total mirroring funds</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":60000}'>60,000.0</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total float MC"}'>Total float MC</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":884235.718}'>884,235.7</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Average"}'>- Average</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":4421.179}'>4,421.2</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Highest"}'>- Highest</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":273063.808}'>273,063.8</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Lowest"}'>- Lowest</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":62.926}'>62.9</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Median"}'>- Median</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-value='{"1":3,"3":1023.081}'>1,023.1</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Top 10 largest"}'>- Top 10 largest</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-value='{"1":3,"3":0.5753}'>57.53%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current"}'>Current</td>
<td style="text-align: right;" data-sheets-formula='=googlefinance(R[-14]C[0], "price")' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-value='{"1":3,"3":303.57}'>303.57</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"52W high (September 15, 2020)"}'>52W high (September 15, 2020)</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-value='{"1":3,"3":323.36}'>323.36</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"52W low (March 19, 2020)"}'>52W low (March 19, 2020)</td>
<td style="text-align: right;" data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-value='{"1":3,"3":199.28}'>199.28</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'><em>Source: KRX</em></td></tr>
</tbody>
</table>

KOSPI 200 biannual rebalancing is coming. This year, it will be December 11, 2020.It will be the first time that the KRX does a KOSPI 200 rebalancing biannually in December.Due to the current market condition (high fluctuations), we will likely see a higher number of changes than usual.





Status

Index
KOSPI 200 Index


Ticker
KOSPI200


Date
September 25, 2020


Rebalancing
Biannually


- Effective date
Next trading day of 2nd Thursday of June &amp; December


- June
June 12, 2020


- December
December 11, 2020


Number of constituents
200


Est. total mirroring funds
60,000.0


Total float MC
884,235.7


- Average
4,421.2


- Highest
273,063.8


- Lowest
62.9


- Median
1,023.1


- Top 10 largest
57.53%


Current
303.57


52W high (September 15, 2020)
323.36


52W low (March 19, 2020)
199.28

Source: KRX



KOSPI 200 Rebalancing Projection: Safe Bets & Those in Grey Area

<p>The Korea Exchange (KRX) will announce the results of the December 2020 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 from 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.</p><p>At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. This takes into the account the inclusion of <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals (326030 KS)</a> as a Fast Entry into the index and exclusion of <a href="https://www.smartkarma.com/entities/kiswire-ltd" target="_blank" data-smartkarma-citation="entities:2093:1" rel="noopener">Kiswire Ltd (002240 KS)</a> on 10 September.</p><p>The expected inclusions have outperformed the expected exclusions, and 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>, by a wide margin over the last 4 months. If the short sell ban expires on 15 September, stocks that have seen a sharp run up could be vulnerable to profit taking and short selling. Reduce existing positions over the next couple of weeks as we near the decision point on whether the short sell ban will stay in place or will be extended.</p>

The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective from 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes. This takes into the account the inclusion of SK Biopharmaceuticals (326030 KS) as a Fast Entry into the index and exclusion of Kiswire Ltd (002240 KS) on 10 September.The expected inclusions have outperformed the expected exclusions, and the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX), by a wide margin over the last 4 months. If the short sell ban expires on 15 September, stocks that have seen a sharp run up could be vulnerable to profit taking and short selling. Reduce existing positions over the next couple of weeks as we near the decision point on whether the short sell ban will stay in place or will be extended.

KOSPI200 Index Rebalance Preview: Adds Outperform Deletes; Short Sell Ban The Wildcard

<div>
<p>The Korea Exchange (KRX) will announce the results of the December 2020 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 from 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.</p>
</div>
<div>
<p>In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.</p>
</div>
<div>
<p>At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes.</p>
<table class="table table-striped">
<colgroup> <col> <col> <col> <col> </colgroup>
<tbody>
<tr>
<td colspan="2" style="text-align: center; width: 162pt;">Potential Inclusions</td>
<td colspan="2" style="text-align: center; width: 167pt;">Potential Exclusions</td>
</tr>
<tr>
<td>039490.KS</td>
<td>KIWOOM Securities Co Ltd</td>
<td>000640.KS</td>
<td>Dong-A Socio Holdings Co Ltd</td>
</tr>
<tr>
<td>019170.KS</td>
<td>Shinpoong Pharmaceutical Co Ltd</td>
<td>145990.KS</td>
<td>Samyang Corp</td>
</tr>
<tr>
<td>005690.KS</td>
<td>Pharmicell Co Ltd</td>
<td>019680.KS</td>
<td>Daekyo Co Ltd</td>
</tr>
<tr>
<td>003090.KS</td>
<td>Daewoong Co Ltd</td>
<td>027410.KS</td>
<td>BGF Co Ltd</td>
</tr>
<tr>
<td>013890.KS</td>
<td>Zinus Inc</td>
<td>004490.KS</td>
<td>Sebang Global Battery Co Ltd</td>
</tr>
<tr>
<td>272210.KS</td>
<td>Hanwha Systems Co Ltd</td>
<td>002270.KS</td>
<td>Lotte Foods Co Ltd</td>
</tr>
<tr>
<td>336260.KS</td>
<td>Doosan Fuel Cell Co Ltd</td>
<td>093050.KS</td>
<td>LF Corp</td>
</tr>
<tr>
<td>003230.KS</td>
<td>Samyang Foods Co Ltd</td>
<td>060980.KS</td>
<td>Halla Holdings Corp</td>
</tr>
<tr>
<td>008350.KS</td>
<td>Namsun Aluminium Co Ltd</td>
<td>002240.KS</td>
<td>Kiswire Co Ltd</td>
</tr>
</tbody>
</table>
<p>Depending on where <a href="https://www.smartkarma.com/entities/sk-biopharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:28966:1" rel="noopener">SK Biopharmaceuticals (BIO SK)</a> lists and the average market cap post 15 trading days, there could be a <a href="https://www.smartkarma.com/insights/sk-biopharmaceuticals-fast-index-entry-possibilities" target="_blank" rel="noopener">change</a> in 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> as early as September.</p>
</div>


The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective from 11 December 2020 and the rebalancing trades will need to be done at the closing auction on 10 December 2020.


In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.


At the current time, we see nine stocks being added to and deleted from the index with another three stocks as very close adds and deletes.

     


Potential Inclusions
Potential Exclusions


039490.KS
KIWOOM Securities Co Ltd
000640.KS
Dong-A Socio Holdings Co Ltd


019170.KS
Shinpoong Pharmaceutical Co Ltd
145990.KS
Samyang Corp


005690.KS
Pharmicell Co Ltd
019680.KS
Daekyo Co Ltd


003090.KS
Daewoong Co Ltd
027410.KS
BGF Co Ltd


013890.KS
Zinus Inc
004490.KS
Sebang Global Battery Co Ltd


272210.KS
Hanwha Systems Co Ltd
002270.KS
Lotte Foods Co Ltd


336260.KS
Doosan Fuel Cell Co Ltd
093050.KS
LF Corp


003230.KS
Samyang Foods Co Ltd
060980.KS
Halla Holdings Corp


008350.KS
Namsun Aluminium Co Ltd
002240.KS
Kiswire Co Ltd



Depending on where SK Biopharmaceuticals (BIO SK) lists and the average market cap post 15 trading days, there could be a change in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) as early as September.


KOSPI200 Index Rebalance Preview - Positioning Begins for December

<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.

South Korea

Zinus Inc. wholesales and distributes household furniture. The Company wholesales and distributes bed frames, sofas, platform beds, mattresses, and other related products. Zinus 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

Zinus (013890 KS)

KOSPI200 Index Rebalance Preview: Review Period Nearly Complete, Nine (Or Ten) Possible Changes

The KOSPI200 index review will be announced in the next 4 weeks. We see 9 inclusions/ exclusions and significant volume to sell on the deletions....

Brian Freitas

KOSPI 200 Rebalancing Projection: Safe Bets & Those in Grey Area

???

Sanghyun Park

KOSPI200 Index Rebalance Preview: Adds Outperform Deletes; Short Sell Ban The Wildcard

The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in...

Brian Freitas

KOSPI200 Index Rebalance Preview - Positioning Begins for December

The Korea Exchange (KRX) will announce the results of the December 2020 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in...

Brian Freitas

KOSPI200 Index Review - A Few Surprises

The KRX announced the list of inclusions and exclusions to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) today. The rebalance is...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)