In today’s briefing:
- KRX Announces Final Version of Value-Up Disclosure Guidelines Alongside Dedicated Website Launch
- KOSDAQ150 Index Rebalance: Short Sell Ban Definitely Helping
- What’s Still Concerning in the HLB Situation & HLB Life Science’s Stock Rights Trading Next Week
- KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner
KRX Announces Final Version of Value-Up Disclosure Guidelines Alongside Dedicated Website Launch
- Starting May 27th, KRX-listed firms can voluntarily disclose value-up details, publicly available on the website. Additionally, view five investment indicators for all KRX-listed companies below.
- Finalized version similar to draft, with added content requested by listed companies, like R&D investment growth rate. Tax incentives excluded, awaiting alignment with Ministry’s plan in July.
- KRX keeps a screening framework for the index akin to March’s criteria, with ROE likely having the highest weight. Recent signals hint at increasing dividend weighting.
KOSDAQ150 Index Rebalance: Short Sell Ban Definitely Helping
- There are 13 inclusions and 13 exclusions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the June rebalance to be implemented at the close on 13 June.
- For the second consecutive review, Fadu (440110 KS) and Shinsung DeltaTech (065350 KS) have been kept out of the index. Not sure what the index committee’s beef with them is.
- The adds have outperformed the deletes and the KOSDAQ150 since the start of the review period. This has been helped, in no small, part by the ban on short selling.
What’s Still Concerning in the HLB Situation & HLB Life Science’s Stock Rights Trading Next Week
- HLB expects Jiangsu Hengrui to receive another CRL from the FDA, but specifics on CMC issues remain unclear. Due to the lack of clarity, it’s advisable to avoid trading HLB.
- HLB IR stated they’ll apply for KOSPI transfer listing after FDA approval when asked by local media, suggesting it’s currently not under consideration.
- We should instead consider short-term trading opportunities in HLB Life Science. Anticipate a surge in forfeited shares from Day 1, reminiscent of last year’s CJ CGV rights offer event.
KOSPI200 Index Rebalance: Index Committee Knows Best; Cosmo AM&T the Winner
- There will be 6 additions and 6 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the June rebalance that will be implemented on 13 June.
- The index committee has used a boatload of discretion in the inclusion of CosmoAM&T (005070 KS) and the deletion of some of the stocks.
- The adds and deletes from the Information Technology sector will also have passive flow from the sector ETF and will increase the impact of the changes.
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