20160427-三星证券-Securities_lending_and_short_selling_19页_2mb

Summary of Securities Lending and Short Selling in Korean Markets

Core Content

This document provides an overview of securities lending balances (SLBs) and short selling activities across major Korean stock indices, including the Kospi large caps, Kospi mid-caps, and Kosdaq 100. It highlights the performance of specific stocks and sectors in terms of short interest, SLB ratios, and institutional net buying.

Main Points

Securities Lending Balances (SLBs)

• Kospi Large Caps: SLBs reached a post-2012 high, significantly outpacing the index gains of 2% and 1.4% for large and mid caps, respectively. The SLB as a percentage of market cap hit 6.2%, surpassing its previous high of 5.5% in August 2015.
• Kospi Mid-Caps: SLBs trended down to KRW8.2t after a record high of KRW9t in early April. The SLB as a percentage of market cap was 6.29%, down from previous highs.
• Kosdaq 100: SLBs hit a current level of KRW8.2t, with a ratio of 8.52% as of April 26, indicating a relative increase compared to previous periods.

Short Selling Trends

• Short selling increased in the construction, steel, and energy sectors, with energy showing a significant rise in shorting as a portion of trading volume.
• Shorting concentrated on specific stock rankings: 81-90 (e.g., Hotel Shilla), 101-120 (e.g., Doosan Infracore), and 0-10 (e.g., Loen Entertainment).
• Stocks with high short interest and short interest ratios are likely to face greater short selling pressure, especially those with rising prices or falling stocks.

Top Stocks by Short Interest and SLB

Kospi Large Caps

• Highest Short Interest: LG Electronics, Hana Financial Group, Samsung Heavy Industries, Daewoo E&C, and others.
• Highest SLB as % of Market Cap: Nong Shim, Taihan Electric Wire, and others reached three-year highs.
• Top SLB and Short Interest: Hankook Tire, Samsung SDI, and Lotte Chemical had the highest levels of SLB and short interest.

Kospi Mid-Caps

• Highest Short Interest: Hyundai Securities, Yungjin Pharm, Meritz Securities, and others.
• High SLB Trends: SLBs for Kospi mid-caps trended down, but certain stocks such as Hyundai Merchant Marine had notable increases.

Kosdaq 100

• Top Stocks: Paradise, Korea Real Estate Trust, Kakao, and others had significant SLB and short selling activity.

Sector Analysis

• Construction & Machinery: SLB as a percentage of market cap spiked.
• Shipbuilding & Transportation: SLB as a percentage of market cap retreated.
• Steel & Materials: SLB levels were high.
• Energy & Chemicals: Short selling surged, and SLB as a percentage of market cap increased.
• IT: SLB levels were moderate.
• Financials: SLB and short interest were notable.
• Consumer Staples & Discretionary: Short selling and SLB levels varied.

Institutional Net Buying

• Institutional net buying showed both positive and negative trends across different sectors and stocks.
• Domestic and foreign institutional activity played a significant role in influencing short selling and SLB levels.

Key Information

• Short Interest: Calculated by dividing 20-day average short interest by 5-day average short interest.
• Short Interest Ratio: Short interest as a percentage of trading volume.
• SLB as % of Outstanding Shares: Indicates potential for share returns or short selling.
• Most Heavily Borrowed: Reflects strong short-selling pressure.
• Most Returned Shares: Indicates high SLB and potential for share repurchase.

Conclusion

The report highlights that securities lending and short selling activities have increased in several sectors, particularly construction, steel, and energy. Certain stocks, such as those in the Kospi large caps, show significant SLB and short interest, suggesting market sentiment and potential price movements. Institutional activity, both domestic and foreign, plays a key role in shaping these trends, with notable variations across different stocks and sectors.