Samsung Electronics Picked as Most Preferred Stock

Credit Suisse says South Korea remains its most preferred stock market in the Asia-Pacific region.

Credit Suisse, a global investment bank, said that the South Korea remains its most preferred stock market (top pick) in the Asia-Pacific region.

Dan Fineman, head of equity strategy for the Asia Pacific region at Credit Suisse, said in a report that he would maintain Korea as the most preferred country for stock investors in the Asia-Pacific region. "Export growth turned positive in September, and retail sales were heading for positive territory until the epidemic re-emerged in August," Fineman said. "We expect Korea to make the strongest performance recovery in 2020 and 2021 in the Asia-Pacific region." The Korean stock market is favored amid a recovery in exports and corporate profits.

Korean stocks are attractive as they are undervalued and relatively cheap compared to those of Japan, China and Taiwan, Fineman added. A strong Korean won also makes Korean stocks look attractive. The growing possibility of Joe Biden beating incumbent President Donald Trump in the U.S. presidential election is a positive for the Korean stock market as it is extremely sensitive to the U.S.-China trade conflict.

Credit Suisse picked Samsung Electronics as the most preferred stock among Asian tech stocks. The Swiss financial company suggested 81,000 won as Samsung Electronics' 12-month target. In addition, it picked Hyundai Motor, Kia Motors, KB Financial, Samsung Electro-Mechanics and POSCO as preferred stocks in the technology, auto and banking sectors with an “overweight” opinion.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution