Foreign Investors Switching to 'Travel and Airline Stocks'

Impact of Global Vaccine Uptake Increase
Airbnb's Highest Purchases This Month
905 Billion Won Bought, Double Last Month
Carnival 15.3 Billion, Boeing 28.3 Billion

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] As COVID-19 vaccination rates increase worldwide, overseas stock investors (Seohak Gaemi) are reshuffling their stock portfolios, focusing mainly on travel and airline-related stocks.

According to the Korea Securities Depository's Saviro on the 22nd, the most purchased stock by domestic overseas investors so far this month is the accommodation sharing company Airbnb. Over about 20 days, stocks worth 90.5 billion KRW were bought, nearly doubling last month's net purchase amount of 42.7 billion KRW. Following Airbnb, domestic investors purchased Roblox (62.7 billion KRW), Apple (56 billion KRW), AMC (52.8 billion KRW), Tesla (42.3 billion KRW), Alphabet (35.5 billion KRW), Amazon (33.6 billion KRW), and an S&P 500 tracking ETF (28.9 billion KRW) in that order.

As COVID-19 vaccinations expand globally, investors are increasing their purchases of travel and airline-related companies that have emerged as beneficiaries not only in the domestic market but also in the U.S. stock market. Cruise operator Carnival and airline company Boeing, which experienced stock price crashes due to the COVID-19 crisis, were also purchased this month with amounts of 15.3 billion KRW and 28.3 billion KRW respectively. This reflects expectations that earnings will significantly improve as travel resumes, especially in North America, where vaccinations have been fastest.

Regarding Airbnb, the most purchased stock by Seohak Gaemi, second-quarter sales are expected to recover to the level of the second quarter of 2019, leading to a turnaround to profitability. The total booking value (GBV) in the first quarter already increased by about 51% compared to a year ago, and the average daily rate (ADR) for accommodations is also showing an upward trend. Wonju Lee, a researcher at Kiwoom Securities, analyzed, “Carnival plans to resume full commercial operations starting next month, and with a larger fleet (88 ships) compared to competitors, the stock price is expected to rise.”

Investors also increased their purchase volume of Roblox, a platform company that has rapidly grown through metaverse games. Although it did not appear among the net purchase stocks last month, the stock price fell nearly 20% this month due to sluggish payment amounts and music-related lawsuit issues, attracting investors considering low-price buying. Yongje Jung, a researcher at Mirae Asset Securities, explained, “Last month was a traditional off-season with significant seasonal effects, so payment amounts are expected to rebound. Although the lawsuit issue may increase stock price volatility, it is positive to view the price decline as an opportunity.”

Meanwhile, domestic investors sold Tesla stocks worth 490.3 billion KRW this month. Tesla, which had maintained the top spot in individual net purchases from October last year through April this year, dropped to second place last month and fell to fifth place this month. Amazon, the shopping platform company that individuals purchased the most last month, dropped to seventh place.

This content was produced with the assistance of AI translation services.