April 18, 2024
Stocks & Bonds
Foreigners scoop up Amorepacific, Posco, SK hynix in 2016
[THE INVESTOR] Shares of AmorePacific, POSCO and SK hynix were the top picks of foreign investors in 2016, according to financial data on Jan. 17.
Foreigners bought a net of 3.6 trillion won ($3.05 billion) in the three companies’ stocks, accounting for almost 30 percent of the total net amount of shares purchased by foreigners, according to data complied by financial information provider FNGuide. Foreign investors pocketed a net of 1.36 trillion won worth of shares in Amorepacific, the country’s cosmetics giant, 1.24 trillion won of the leading steel maker Posco and 1.02 trillion won of chipmaker SK hynix in 2016.
Other popular stocks among foreigners included those of Naver, Korea Aerospace Industries, LG Household & Health Care, Korea Zinc.
Meanwhile, foreigners were net sellers of Samsung Electronics, Hyundai Mobis and Samsung Insurance.
A net of 1.7 trillion won worth of shares in Samsung Electronics and 1.4 trillion won of preferred shares in the company were sold by foreigners last year.
However, shares of Samsung gained 43 percent in 2016 while Amorepacific plunged 22.44 percent during the same period.
Shares of Amorepacific have been suffering since July, as China appears to be taking economic measures in retaliation against South Korea’s decision to deploy the US Terminal High Altitude Area Defense missile defense system here.
Investors had dumped shares of Samsung, as the company recalled its flagship Galaxy Note 7 in the third quarter of 2016. But shares in the company recovered in late 2016 as it logged an earnings surprise for the third and fourth quarters.
As of the end of December, foreigners owned 481.6 trillion won worth of Korean shares, exceeding the 480 trillion mark for the first time. They accounted for 31.2 percent of the total stock market value, adding 2.6 percentage points from the end of 2015, according to the Finance Service Commission, the country’s financial regulator.
In 2016, foreign investors bought a net of 12.1 trillion won, compared with a net selling of 3.46 trillion won in the previous year.
The biggest portion of the funds came from the US with 197 trillion won, followed by the UK with 41.9 trillion won and Luxemburg with 31.0 trillion won, according to the FSC.
Analysts predict the inflow of foreign funds will continue for the time being.
“While European funds were a net seller from 2012 to 2015 and the North American funds were a net buyer from 2013 to 2015, they both became net buyers in 2016,” Yeom Dong-chan, an analyst with eBEST Investment and Securities Co. wrote in a note Tuesday. “The weak Korean won is a positive factor that might attract foreign investors.”
By Park Ga-young/The Korea Herald (gypark@heraldcorp.com)
Foreigners bought a net of 3.6 trillion won ($3.05 billion) in the three companies’ stocks, accounting for almost 30 percent of the total net amount of shares purchased by foreigners, according to data complied by financial information provider FNGuide. Foreign investors pocketed a net of 1.36 trillion won worth of shares in Amorepacific, the country’s cosmetics giant, 1.24 trillion won of the leading steel maker Posco and 1.02 trillion won of chipmaker SK hynix in 2016.
Other popular stocks among foreigners included those of Naver, Korea Aerospace Industries, LG Household & Health Care, Korea Zinc.
Meanwhile, foreigners were net sellers of Samsung Electronics, Hyundai Mobis and Samsung Insurance.
A net of 1.7 trillion won worth of shares in Samsung Electronics and 1.4 trillion won of preferred shares in the company were sold by foreigners last year.
However, shares of Samsung gained 43 percent in 2016 while Amorepacific plunged 22.44 percent during the same period.
Shares of Amorepacific have been suffering since July, as China appears to be taking economic measures in retaliation against South Korea’s decision to deploy the US Terminal High Altitude Area Defense missile defense system here.
Investors had dumped shares of Samsung, as the company recalled its flagship Galaxy Note 7 in the third quarter of 2016. But shares in the company recovered in late 2016 as it logged an earnings surprise for the third and fourth quarters.
As of the end of December, foreigners owned 481.6 trillion won worth of Korean shares, exceeding the 480 trillion mark for the first time. They accounted for 31.2 percent of the total stock market value, adding 2.6 percentage points from the end of 2015, according to the Finance Service Commission, the country’s financial regulator.
In 2016, foreign investors bought a net of 12.1 trillion won, compared with a net selling of 3.46 trillion won in the previous year.
The biggest portion of the funds came from the US with 197 trillion won, followed by the UK with 41.9 trillion won and Luxemburg with 31.0 trillion won, according to the FSC.
Analysts predict the inflow of foreign funds will continue for the time being.
“While European funds were a net seller from 2012 to 2015 and the North American funds were a net buyer from 2013 to 2015, they both became net buyers in 2016,” Yeom Dong-chan, an analyst with eBEST Investment and Securities Co. wrote in a note Tuesday. “The weak Korean won is a positive factor that might attract foreign investors.”
By Park Ga-young/The Korea Herald (gypark@heraldcorp.com)
