International investors sold South Korean stocks for the ninth day, the longest losing streak in two months, helping drag the benchmark Kospi (KOSPI) index down the most in a week.
Foreigners sold a net 153 billion won ($135 million) of Kospi stocks as of 12:06 p.m. in Seoul trading, according to data compiled by Bloomberg. Nine consecutive days of outflows would be the longest streak since the nine days to April 24.
The Kospi sank 0.7 percent to 1,888.03 today, with Samsung Electronics Co. (005930) accounting for more than 30 percent of the drop. The stock, which represents 19 percent of the Kospi, has slumped 11 percent since June 4 as brokerages including Morgan Stanley cut earnings forecasts amid concerns over handset sales.
“Today’s downturn in the South Korean market is most likely coming from the sell-off by international investors, with the massive selling of Samsung stocks ever since those reports were released,” said Im Jeong Jae, a Seoul-based fund manager at Shinhan BNP Paribas Asset Management Co., which oversees about $28 billion, said by phone today.
Korea Exchange is closely watching stock and derivative movements amid the slump in Samsung, officials at the bourse operator said on June 12.
Samsung shares are valued at 6.2 times 12-month projected profit, compared with the Kospi’s 8.7 times, according to data compiled by Bloomberg. The MSCI Emerging Markets Index trades at a multiple of 9.8.
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