Daily BriefsSouth Korea

South Korea: F&F, Korea Stock Exchange Kospi 200 Index and more

In today’s briefing:

  • Korea Stub Trades: F&F Holdings Pair in a Substantial Diversion with F&F’s KOSPI 200 Inclusion
  • Asia Faces Short Lived Push Above Key Trendline Barriers

Korea Stub Trades: F&F Holdings Pair in a Substantial Diversion with F&F’s KOSPI 200 Inclusion

By Sanghyun Park

  • F&F Holdings is a single-subsidiary PURE STUB PLAY with no operating assets. It currently trades at a 54.30% discount to its NAV, and its 20-day MA sigma sits below -2.0.
  • The pair is currently in a substantial diversion. The passive inflow caused by F&F’s KOSPI 200 inclusion appears to have caused a flow imbalance.
  • F&F is becoming a primary target for KOSPI 200’s post-rebalancing shorting events. Then, we can consider using F&F Holdings as a long hedge, in addition to outright shorting for F&F.

Asia Faces Short Lived Push Above Key Trendline Barriers

By Thomas Schroeder

  • Our May 20th insight outlined risk of a dip and pressure to challenge key barriers in Japan, Korea, Taiwan and the HSI. ST push and fade later this week.
  • The SPX push through 4,100 added rally fuel. Added long in Euro banks and the CAC (bull wedge breakouts.
  • Korea the favored market for a ST short squeeze,  then re set short with NKY next in line. Taiwan short near 16,700. HK tech index bear triangle/HK bearish.

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