In today’s briefing:
- FnGuide Top 10 Rebalancing on June 10: More Substantial Flow Impact than Last Time
- SK Telecom: Historical Price Analysis of Reaching 100% Foreign Ownership Limit
- NCsoft: A Strong Turnaround Play in Korean Game Sector
FnGuide Top 10 Rebalancing on June 10: More Substantial Flow Impact than Last Time
- Celltrion Inc (068270 KS)’s deletion seems pretty much a foregone conclusion as its average float-adjusted market cap on May 3-19 is way below the next one in line.
- Shinhan Financial (055550 KS) is the one to replace Celltrion based on the numbers so far. There is close to a ₩1T gap with the next one, POSCO (005490 KS).
- In this rebalancing, the flow impact of the addition/deletion is even more significant. So, their share price fluctuations on June 10 will likely be more substantial than last time.
SK Telecom: Historical Price Analysis of Reaching 100% Foreign Ownership Limit
- In this insight, we analyzed the different share price movements of SK Telecom relative to KOSPI from 2005 to 2022 when foreign ownership remained above 99%.
- Once MSCI announces the potential deletion of SK Telecom from MSCI Korea Index in the next several weeks, there could be some short term temporary weakness on SK Telecom.
- Over a longer period, SK Telecom is well poised to outperform the market amid the market’s rotation into value stocks and the company’s strong earnings and cash flow growth.
NCsoft: A Strong Turnaround Play in Korean Game Sector
- Amid recent market carnage, one of the strong turnaround stocks in Korea is NCSOFT Corp (036570 KS) which is down 54% from its highs in February 2021.
- Three major reasons why NCsoft’s share price will turnaround include attractive valuations, better control of labor costs, and strong pipeline of new games.
- Short sale value/market cap ratio for NCsoft has declined materially in the past several weeks, reflecting increased optimism in the company’s future prospects.
Before it’s here, it’s on Smartkarma
