Foreign investors are leading the current Kosdaq rally, amid mounting concerns over the overly heated secondary stock market, industry officials said yesterday.
While institutional investors - who had long been at the forefront of purchasing tech-loaded Kosdaq stocks - have recently turned away from the market, more foreigners have been replacing them to lead the bullish trend of the Kosdaq. Analysts said the secondary bourse may move above the 500 point level soon, the first since last August.
According to FnGuide, an online financial information provider, yesterday, expatriates posted net sales of 565.7 billion ($425.8 million) worth of Kosdaq-listed stocks for the past three years - 119.9 billion won in July, 260.9 billion in February and 184.9 billion in March. This month, however, they have recorded net purchasing of 41.9 billion won in the market already.
Institutions, on the other hand, posted net sales of 75.5 billion won over the time. For the past three months, they reported net purchasing of 680.3 billion won worth of Kosdaq-listed shares. "Since the beginning of this year, institutions have thought highly of Kosdaq company's fundamental outlook," said Kim Jin-ho, an analyst of Hana Daetoo Securities, in a recent report.
"Foreign investors seem to have finally opened their eyes to the global competitiveness of the market," he continued.
IT companies have been especially popular among foreigners, as they recorded net buying of 29.2 billion won worth of IT hardware-related shares so far this month. Last month, they posted net sales of 3.6 billion won worth of related stocks.
By company, Megastudy, a Seoul-based education company deriving a huge chunk of revenues from its online operations, sold 1.82 billion won worth of its stocks to foreign investors this month, followed by touch screen solution company Digitech System (1.5 billion won), CJ Home Shopping (490 million won) and Kiwoom Securities (30 million won).
Industry specialists advise not to make blind investments in pursuit of quick profit realization.
"Foreign investors are completely performance oriented, even in Kosdaq. Popularity of comparatively crisis-resistant companies, such as Megastudy and video game makers, proves it," Jung Myung-ji, researchers of Samsung Securities, said in a report.