SEOUL, Jul. 11 (Korea Bizwire) — South Korea ranked second among emerging economies in the amount of stocks purchased by foreign investors during the first six months this year, market data showed Tuesday.
Foreigners net bought US$9 billion worth of South Korean stocks during the January-June period, the second largest only after Taiwan’s $9.4 billion, according to the statistics by Yuanta Securities.
India came in third with $8.5 billion, followed by Brazil at $1.4 billion, Indonesia at $1.3 billion, the Philippines at $408 million and Vietnam at $406 million.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped 18 percent to 2,291.79 as of June 30 from the end of last year, marking the highest rise among emerging economies.
Vietnam posted the second-highest increase rate at 16.8 percent, trailed by India at 16.1 percent.
Analysts forecast the continuation of “Buy Korea” by foreigners for the coming months, saying sound corporate earnings and expectations of the global economic recovery will be able to offset concerns over North Korea’s firing of an intercontinental ballistic missile and possible capital flight from U.S. rate hikes.
“We do not see any risk of overvaluation of the rising stocks,” Min Young-kyu of Yuanta Securities said. “South Korea’s earnings per share (EPS) is expected to be the highest among 46 countries in the Morgan Stanley Capital International (MSCI) index. However, South Korea’s stock prices are currently valued at the third lowest.”