Foreign Investors Dump $62 Billion in Kospi Stocks as Rising Weightings Force Sales
Updated
Updated · CNBC · Jun 8
Foreign Investors Dump $62 Billion in Kospi Stocks as Rising Weightings Force Sales
3 articles · Updated · CNBC · Jun 8
Summary
$801 million of Kospi shares were sold net by foreign investors by 11 a.m. Singapore time Monday, extending an estimated $62 billion exodus through late May.
Surging Korean stocks have lifted their weight in global and emerging-market benchmarks, forcing active managers to cut holdings to stay within portfolio risk limits and ownership restrictions.
Samsung Electronics and SK Hynix's outsized gains have also raised concentration concerns, even as strategists said the selling looked mechanical rather than a negative call on Korea's fundamentals.
Domestic investors have absorbed the outflows with about $70 billion of retail inflows this year, and Goldman Sachs still sees 37% upside with a 12-month Kospi target of 12,000.