Daily BriefsSouth Korea

Daily Brief South Korea: Korea Stock Exchange Kospi Index, Korea Stock Exchange KOSPI 200 and more

In today’s briefing:

  • FSC Gives the Green Light for Full-Scale Short Selling Today: What It Means for Trading
  • Kospi Index Options Weekly (Feb 17 – 21): Hedge Considerations as Rally Stalls at 350


FSC Gives the Green Light for Full-Scale Short Selling Today: What It Means for Trading

By Sanghyun Park

  • The push for MSCI DM inclusion drove Korea’s full short-selling resumption, clearing the KRX index rights issue, allowing MSCI to roll out derivatives, making full short selling the final step.
  • With full short-selling back, traders are watching for large-scale quant funds to return, potentially boosting liquidity across the market alongside the ATS launch, after years of individual large-cap setups.
  • The market is watching how full short-selling resumption narrows bid-ask spreads and impacts sector rotation, prompting traders to prepare setups for the broader market shift.

Kospi Index Options Weekly (Feb 17 – 21): Hedge Considerations as Rally Stalls at 350

By John Ley

  • After eight consecutive days of gains, the Kospi rally paused in the last two sessions, closing just above 350.
  • The 350 area aligns with several key levels from the past three years.
  • For those looking to hedge recent gains, we recommend two preferred hedge strategies.

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