The Korea Exchange announced on Sept. 18 that the KOSPI market cap was 1,892.3866 trillion won on Sept. 15 and foreign investors accounted for 30.36 percent of the market cap that day. The ratio reached the lowest level since July 24, 2009 and is about to fall below 30 percent for the first time sin
The U.S. taper tantrum is affecting South Korean financial markets again. The Korean won-U.S. dollar exchange rate closed at 1,390.9 won on Sept. 14, up 17.3 won from the previous day and the highest since March 30, 2009. The opening exchange rate was 1,393 won and the rate touched 1,395.5 won durin
The Korea Exchange announced on Sept. 12 that the average daily short selling trading value was 492.5 billion won for the first six trading days of this month.On Sept. 1, the short selling trading value was 678.4 billion won, over 600 billion won for the first time since June 17, when the value was
Democratic Party of Korea lawmaker Kim Hoi-jae remarked on Sept. 5 that KOSPI dropped 19.2 percent from Jan. 3 to Sept. 1 and the decline is the third-fastest among the stock markets of the 10 OECD member states including the United States, Japan, the United Kingdom and France.“KOSPI dropped from 2,
The Korean won-U.S. dollar exchange rate surged last month, led by the Fed’s hawkish stance. The rate topped 1,350 won in about 13.5 years on Aug. 29 before closing at 1,362.6 won on Sept. 2.Still, foreign investors recorded a net buying of 3.9837 trillion won in the South Korean stock market last m
Short selling in the South Korean stock market is increasing along with the possibility of another economic recession. Short sellers are targeting overvalued stocks and those more vulnerable to recession risks in particular.The Korea Exchange announced on Sept. 1 that short selling in the market tot
The author is a global equity strategist of Shinhan Investment Corp. He can be reached at park.sj@shinhan.com. – Ed. Looking for the market bottomInvestor focus is now on finding the market bottom and setting up investment strategies for the start of a recession. Historically, stock market downturns
The Korea Exchange announced on Aug. 28 that foreign investors’ net buying in KOSPI was 5.38 trillion won from July 14 to Aug. 26.“They showed this year’s first net buying in KOSPI on July 14 and they concentrated on large-cap stocks, including LG Energy Solution, Samsung Electronics, Samsung SDI, H
The authors are analysts of Shinhan Investment Corp. They can be reached at idh@shinhan.com and jiunmyoung@shinhan.com, respectively. -- Ed. Initiate coverage with BUY for a target price of KRW180,000We initiate our coverage of Hyundai Heavy Industries with BUY for a target price of KRW180,000, base
Foreigners’ investment in Korean securities turned into a net inflow in July. During the same period, the won/dollar exchange rate rose and interest rates in major advanced countries plunged.Foreign investment in Korean stocks switched to a net inflow of US$160 million in July as investor sentiment
The Korea Exchange announced that foreign investors’ net buying in KOSPI was 2.3215 trillion won in July this year. It is this year’s high and the largest since December last year, when the amount was 3.3987 trillion won. For reference, their net buying stood at 128.3 billion won in May and their ne
The author is a strategist of NH Investment & Securities. He can be reached at lawrence.kim@nhqv.com. -- Ed. When will the stock market bottom out? A range of leading economic indicators and long-short yield spreads are signaling that an economic recession is imminent. In general, once the real econ
The author is an analyst of NH Investment & Securities. He can be reached at esshim@nhqv.com. -- Ed. Established in 1958, Samick is a global comprehensive musical instrument firm that was listed on the Kospi in 1988. It produces and sells various instruments, including pianos and guitars. Both ongoi
The Korea Exchange announced on July 18 that foreign investors’ ratio in KOSPI was 31.18 percent that day. “The ratio has decreased from 33.5 percent since the beginning of this year and the current figure is the lowest since the global financial crisis of 2009,” it said.The ratio of foreign investm
Foreign investors are continuing to sell South Korean stocks. Their net selling in KOSPI amounted to more than 15.24 trillion won from Jan. 3 to July 6, when KOSPI dipped below 2,300 points for the first time in 20 months. For reference, the amount was 24.5652 trillion won in 2021 as a whole.From Ja
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. Disclosure of corporate governance reports is taking root. Expectations are high that Korean firms will enter into a responsible investment virtuous cycle via strengthening of disclosure target
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. We maintain BUY; cut target price 25.2% to KRW86,000 We maintain BUY on KIH but cut our TP by 25.2% to KRW86,000. Our TP represents KRW141,709 12m fwd BVPS, 0.61x target multiple (sustainable ROE: 11.5%→9.4%; C
The author is an analyst of KB Securities. He can be reached at cygun101@kbfg.com. -- Ed. Maintain BUY; cut target price 21.4% to KRW110,000; top industry pick We maintain BUY on Kiwoom Securities but cut our TP by 21.4% to KRW110,000. Our TP represents KRW183,907 12m fwd BVPS, 0.60x target multiple
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Maintain BUY; cut target price to KRW42,500 We cut our 12m fwd TP by 15% to KRW42,500 (12m fwd BVPS x 0.91x target P/B). Our revisions to 1y monetary stabilization bond (risk-free rate), 30y KTB yield (TGR) and b
The author is a strategist of NH Investment & Securities. He can be reached at lawrence.kim@nhqv.com. -- Ed. Economic outlook: Faced with all-too-familiar difficulties- Economy:1) The OECD’s economic leading indicators for major countries have been on the decline after peaking in 2Q21, sinking below