Daily BriefsSouth Korea

Daily Brief South Korea: DearU and more

In today’s briefing:

  • KRX BBIG K-New Deal Rebalancing: Official Results & Passive Flow Impacts


KRX BBIG K-New Deal Rebalancing: Official Results & Passive Flow Impacts

By Sanghyun Park

  • After results were transitioned to non-public information, it has been observed that results are reflected in prices significantly later, with substantial price impact occurring close to the rebalancing trading day. 
  • Even though the AUMs have recently decreased, the passive impact size is quite substantial, considering a recent pattern of price impact concentrating within a maximum of about two trading days.
  • A heavy Long-Short setup on these pairs, DearU / Douzone Bizon and SK Biopharmaceuticals / SK Bioscience (302440 KS), is something we should very actively consider.

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