In today’s briefing:
- Short-Term Reverse Flow Trading on SK Telecom
- MSCI May 2022 Rebalance: South Korea
- Voronoi: Reduces IPO Price Range by 25%
Short-Term Reverse Flow Trading on SK Telecom
- Heavy shorts came out in a short trading window. Usually, this is likely to be strategic trading by a few institutional investors, which causes PBS to set up loan transactions.
- We should then consider the possibility that short positions betting on MSCI deletion will be sold back to the market by PBS who set up loan transactions after short-covering
- SKT is likely to undergo a share price correction due to a short-term overhang, and we need to consider setting up a position aimed at this.
MSCI May 2022 Rebalance: South Korea
- MSCI announced its May 2022 rebalance results today. Hyundai Heavy Industries was the only new addition, which was mostly expected.
- Despite continued concerns about SK Telecom being excluded in the next round of MSCI rebalancing, its improving fundamentals and shift to more value stocks are more important factors.
- There are 18 additions and 17 deletions for the MSCI Korea small cap index. Among the additions, 6 of them are also potential inclusions in the KOSDAQ150 rebalance in June.
Voronoi: Reduces IPO Price Range by 25%
- Voronoi is trying again to complete its IPO in Korea after lowering its IPO price range by 25% to 40,000 won to 46,000 won.
- The IPO base deal size is from $41 million to $47 million. Expected market cap is from 536 billion won to 616 billion won.
- Voronoi is developing treatments for tumors, degenerative brain diseases, and autoimmune diseases. The total amount of accumulated milestones for three global technology exports is $1.79 billion.
Before it’s here, it’s on Smartkarma
