Trading Idea Post Changes to KOSPI 200 and KOSDAQ 150

• KRX announced changes to KOSPI 200 and KOSDAQ 150 indices. In KOSPI 200, 6 were added and 6 were removed. In KOSDAQ 150, 13 were added and 13 were removed.

• The six additions to KOSPI 200 had an average share price increase of 17.7% YTD. The six deletions had an average share price decline of 2.5% YTD.

• One trading idea post the announcement of the KOSPI 200 and KOSDAQ 150 rebalances is to highlight the potential underperformers (including 20 lowest market cap stocks in KOSPI200/KOSDAQ150 post rebalance).

On 24 May, Korea Exchange announced changes to KOSPI 200 and KOSDAQ 150 indices which will be effective from 14 June 2024. In KOSPI 200, six companies were added and six were removed. In KOSDAQ 150, 13 companies were added and 13 were removed.

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Changes to KOSPI 200

• Additions to KOSPI 200 - The table below provides the changes to KOSPI 200. The six additions had an average share price increase of 17.7% YTD.

  • The top two performing stocks among the additions included Hanmi Semiconductor (042700 KS) (up 139.4% YTD) and ISU Specialty Chemical (457190 KS) (up 46.6% YTD).

  • The average market cap of the six additions is 5.2 trillion won (US$3.9 billion).

• Deletions to KOSPI 200 - The six deletions had an average share price decline of 2.5% YTD.

  • The top two worst performing stocks among the deletions included DB Hitek Co., Ltd. (000990 KS) (down 27.1% YTD) and Is Dongseo (010780 KS) (down 11.9% YTD).

  • The average market cap of the six deletions is 1.6 trillion won (US$1.2 billion).