Goldman Sachs · South Korea · Singapore · India · CNBC Technology
Foreign investors have dumped billions of dollars of Korean stocks this year despite record rally
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Foreign investors have dumped billions of dollars' worth of South Korean stocks this year, even as the Kospi has emerged as one of the world's standout performers thus far, with record year-to-date gains.
Key facts
- On Monday, overseas investors had unloaded a net 1.24 trillion won (about $801 million) worth of Kospi-listed shares as of 11am Singapore time (11p.m
- Similarly, Goldman Sachs remained bullish on Korean equities, raising its 12-month Kospi target to 12,000 and forecasting a further 37% upside in a note published Friday
- Foreign investors continued to sell the Kospi market, driven by outflows for Kospi Tech and Auto," Goldman Sachs analysts wrote in a June 5 note
- The outflow from foreigners has been more than made up for by domestic investors," Wilcox said, pointing to an estimated $70 billion of retail inflows this year and a sharp increase in brokerage
Summary
On Monday, overseas investors had unloaded a net 1.24 trillion won (about $801 million) worth of Kospi-listed shares as of 11am Singapore time (11p.m. "Foreign investors continued to sell the Kospi market, driven by outflows for Kospi Tech and Auto," Goldman Sachs analysts wrote in a June 5 note. Yet many investors and strategists say foreign selling has less to do with deteriorating fundamentals and more to do with the market's own success. "This is forced selling that we are seeing from our investors and clients," said Chetan Seth, Nomura 's Asia-Pacific equity strategist.