Global investors bet on S. Korean shares in 2009: report

By Lee Youkyung
SEOUL, Sept. 16 (Yonhap) -- Seoul's bourse attracted the largest amount of
foreign buying this year among Asian markets, boosted by advantageous foreign
exchange rates and positive earnings outlooks for local firms, stock exchange
operators said in a report released here Wednesday.
According to the Korea Exchange (KRX), global investors purchased a net US$16.7
billion worth of local shares between January and Sept. 11, becoming net buyers
for the first time in four years.
Global investors bought a net $8.7 billion worth of shares in Taiwan, $8.5
billion in India, and $2.8 billion in Japan during the same period, according to
the KRX.
"South Korean stocks tumbled more than other emerging countries last year, but
local companies are making a quick turnaround," Park Jong-chan, a KRX official,
said.
Market analysts added that local stocks became more attractive to overseas
investors due to favorable exchange rates and a move by the FTSE Group, which
upgraded South Korean stocks to its developed-market list.
"The Korean won has been undervalued compared to other countries' currencies,
allowing foreigners to make easier entrance into local markets," said Lee
Jae-man, an analyst at Tongyang Securities.
The global index operator FTSE Group announced last year it would promote South
Korea from its advanced emerging market list to its developed market list as of
Sept. 21. South Korea is the third Asian country after Hong Kong and Singapore to
join the FTSE list of investor-friendly markets.
The report also said the benchmark Korea Composite Stock Price Index (KOSPI)
advanced 11.8 percent since the collapse of Lehman Brothers sparked a global
financial crisis, making the 13th-largest advance among 49 global stock market
indices. China was ranked first among the emerging markets index, having jumped
42.8 percent since September 2008.
The KOSPI finished 1.81 percent higher Wednesday at 1,683.33, a new 2009 closing
high.
ylee@yna.co.kr
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