April 25, 2024
Finance
NPS lowers local stock investment guideline for 2018
[THE INVESTOR] The National Pension Service has lowered its local stock investment guideline for this year for an estimated 1 trillion won (US$939.40 million) available to purchase new stocks, officials said on Jan. 8.
The fund management committee of the NPS set this year‘s investment ratio at 18.7 percent compared with last year’s 19.2 percent. The actual ratio as of end-2017 was 21 percent because the NPS has a 5 percentage-point leeway with the guideline.
“The stock investment guideline has been lowered, and the strong local stock market does not allow for much room to buy new shares,” a NPS official said. “We will mostly be changing the portfolio rather than buying new stocks.”
Recent data indicate that the NPS has been passive in buying stocks. Its 10-day purchase in the secondary KOSDAQ market from Dec. 20 came to 285.6 billion won, only about half of the 578.9 billion won by retail investors. Foreigners raked in 3.5 trillion won during the same period.
Portfolio adjustments have been expected as the government is scheduled to announce this week steps to activate the KOSDAQ market, including more investment by the NPS.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The fund management committee of the NPS set this year‘s investment ratio at 18.7 percent compared with last year’s 19.2 percent. The actual ratio as of end-2017 was 21 percent because the NPS has a 5 percentage-point leeway with the guideline.
“The stock investment guideline has been lowered, and the strong local stock market does not allow for much room to buy new shares,” a NPS official said. “We will mostly be changing the portfolio rather than buying new stocks.”
Recent data indicate that the NPS has been passive in buying stocks. Its 10-day purchase in the secondary KOSDAQ market from Dec. 20 came to 285.6 billion won, only about half of the 578.9 billion won by retail investors. Foreigners raked in 3.5 trillion won during the same period.
Portfolio adjustments have been expected as the government is scheduled to announce this week steps to activate the KOSDAQ market, including more investment by the NPS.
By Alex Lee and newswires (alexlee@heraldcorp.com)
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