2024-02-12 05:26:51
Stock prices of stocks net purchased by foreigners all rise… Ant returns ‘drop’
Debt investment soars due to policy expectations… “Caution is needed as short-term overheating”
Employees are monitoring the stock market at the Hana Bank headquarters in Myeong-dong, Seoul on the 8th. Photo = Yonhap News
Maeil Ilbo = Reporter Gwangpyo Lee | Low PBR stocks with low price-to-book ratio (PBR) are leading the domestic stock market. Expectations that undervaluation will be resolved once the corporate value up program is introduced have driven up stock prices. However, the joys and sorrows of each investment entity are mixed. The returns for foreign investors who have scooped up low PBR stocks are impressive, but individual investors are crying.
According to the Korea Exchange on the 12th, foreign investors made net purchases of 5.4862 trillion won in the securities market from the 25th of last month to the 8th. Foreign interest seems to be increasing following the government announced on the 24th that it would introduce a corporate value-up program. The Corporate Value Up Program is a measure introduced by the government to resolve the ‘Korea Discount’ problem and is scheduled to be introduced starting next month.
Foreign buying was noticeable in large stocks. Foreigners made net purchases for 15 consecutive trading days from the 19th of last month to the 8th of last month. It has been regarding 1 year and 2 months since September 29 to October 27 (19th), 2022, that a foreigner purchased a KOSPI 200 company for more than 15 consecutive days.
Looking at individual stocks, foreign funds flocked to low PBR stocks such as Hyundai Motors (KRW 1.2309 trillion), Kia (KRW 539.7 billion), Samsung C&T (KRW 307.3 billion), and KB Financial Group (KRW 278 billion). In particular, the net purchase amount of Hyundai Motors amounts to 21.9% of the total net purchase amount of KOSPI.
The top 20 stocks net purchased by foreigners all rose. Among them, 14 stocks rose so steeply that the increase was in double digits. Samsung Fire & Marine Insurance rose the most at 40.51%. Hyundai Motors (35.14%) and Samsung C&T (33.3%) also soared. Hanmi Semiconductor (32.6%), Samsung Life Insurance (32.59%), and SK Square (30.14%) also rose by more than 30%.
Unlike foreigners, individuals began to realize profits by net selling KRW 6.5926 trillion. In particular, individuals sold 1.4301 trillion won worth of Hyundai Motors, which ranks first in net purchases by foreigners. Most of the top net sellers, including Kia (KRW 618.2 billion), Samsung C&T (KRW 451.5 billion), and KB Financial Group (KRW 327.7 billion), matched the top net purchases by foreigners.
However, the returns on stocks purchased by individuals were shabby. Among the top 20 stocks purchased, only three stocks rose in price. Only Samsung SDI (8.76%) and LG Energy Solution (3.55%) showed significant increases, while SK Hynix (0.92%) only rose slightly. On the other hand, NAVER (KRW 298.8 billion), which was purchased the most, fell 5.5%, and the top 1 net purchased stocks, including Samsung Electro-Mechanics (-4.8%), Hyundai Auto Ever (-11.07%), Hive (-9.91%), and LG Innotek (6.37%), were down 5.5%. All 5th places fell.
Cho Chang-min, a researcher at Yuanta Securities, said, “The upward trend of low PBR stocks will continue for the time being,” and added, “Among low PBR stocks, stocks with excellent financial soundness saw a large increase in their stock prices.” He added, “Companies with a solid financial structure can actively pursue shareholder returns following the value-up program is solidified.”
Meanwhile, the ‘debt’ of ants is also rapidly increasing. According to the Korea Financial Investment Association, the credit balance in the securities market as of the 8th was 9.451 trillion won, an increase of 717.2 billion won (8.2%) compared to the end of last year (8.7338 trillion won). The margin transaction loan balance is the amount that the investor has not repaid following borrowing money from a securities company for stock investment. An increase in this balance means that leveraged (borrowed) investments have increased.
Among the stocks with the highest market capitalization, the credit balances of automobiles and financial stocks classified as low PBR stocks, including semiconductor stocks, all increased. As of the 8th, Hyundai Motor Company’s credit balance was 145.45 billion won, a 65% increase compared to the end of last year (88.04 billion won).
Kia’s credit balance was 108.5 billion won, a 121% increase compared to the end of last year (49.06 billion won). In addition, the credit balances of financial and holding companies such as KB Financial Group and Shinhan Financial Group also surged 113% and 178%, respectively, this year. Among semiconductor stocks, Samsung Electronics’ credit balance increased by 42% compared to the end of last year, and SK Hynix’s credit balance increased by 70%.
Amid widespread expectations of a turnaround in the semiconductor industry, the news that the government is pursuing a corporate value-up program seems to have had an impact on the growing interest of investors in low PBR stocks that are expected to benefit.
In the securities industry, advice is given to avoid indiscriminate investment in low PBR themes and to invest following considering the fundamental strength of the company. In particular, it is pointed out that following the specific details of the corporate value-up program are confirmed, it is necessary to consider the possibility that stocks that have risen so far will be adjusted at once due to the disappearance of policy materials.
Cho Byeong-hyeon, a researcher at Daol Investment & Securities, suggested, “Recently, low PBR stocks have shown the trend of theme stocks, and caution is needed as they have become overheated in a short period of time. There is a need to invest in consideration of the company’s fundamentals.”
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