Focusing on Stocks That Can Benefit from COVID-19
Korea Securities Depository (KSD) announced on May 3 that South Korean investors’ total settlement in foreign stock markets added up to US$38,864.19 million for the first four months of this year. KSD explained that the amount is more than three times as compared with the same period of the preceding year and slightly less than last year’s total and individual investors’ direct investment accounts for most of the settlement.
Last month, South Korean investors’ net buy in the U.S. stock market totaled US$1,847.91 million, equivalent to 92.82 percent of the monthly total. Especially, individual investors’ net buy in that market added up to US$2,369.75 million from March 23 to April 28 whereas the amount stood at US$100 million in the same period of the previous year.
They showed a change in investment trend in the four months. Specifically, they concentrated on stocks that can benefit from the spread of COVID-19. The examples include Hasbro, their top pick for April. The stock price of the company, which recently launched online education content services, jumped more than 60 percent and their net buy totaled US$245.92 million that month. A rapid increase in demand for toys contributed to the rally, too. The popularity of Microsoft and Alphabet rose as well while Tesla lost some of its popularity.
Overseas investment expansion is because of various factors, including a much higher rate of return. When it comes to the top 10 net buys in foreign stock markets and those in the South Korean market, the former gained approximately 28 percent and the latter rose 20 percent from their lowest levels of this year, respectively.