Foreigners Sell South Korean Stocks for 9th Day; Kospi FallsSharon Cho
International investors sold South Korean stocks for the ninth day, the longest losing streak in two months, helping drag the benchmark Kospi index down the most in a week.
Foreigners sold a net 128.6 billion won ($114 million) of Kospi stocks today, taking total sales in the past nine days to 3.9 trillion won, data compiled by Bloomberg and Korea Exchange Inc. show. The string of outflows is the longest streak since nine days of net selling through April 24.
The Kospi sank 0.7 percent to 1,888.31 today, with Samsung Electronics Co. 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 was closely watching stock and derivative movements amid the slump in Samsung’s shares, 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.