KOSPI Earnings Forecasts Stagnate... Sectors and Companies Attracting Foreign Investment

[Asia Economy Reporter Lee Seon-ae] As the correlation between KOSPI and foreign investors' supply and demand increases, investment advice has been given to pay attention to the preferred sectors and companies of foreign investors.

According to DB Financial Investment on the 19th, examining the changes in foreign ownership ratios, foreign investors have preferred the software, insurance, and display sectors over the past month. Compared to the beginning of the week, foreign ownership ratios increased in the display, trading, and capital goods sectors. Despite stock prices falling over the past month, companies with increased foreign ownership ratios both monthly and compared to the beginning of the week include LG and Com2uS Holdings. Others with increased foreign ownership ratios include Huons Global, Lotte Holdings, Semtech, Kemtros, EcoPro HN, Wemade, and DPC.

Seol Tae-hyun, a researcher at DB Financial Investment, said, "With the uncertainty of the Federal Open Market Committee (FOMC) resolved and despite concerns about Omicron, earnings forecasts for reopening-related stocks continue to rise," adding, "It is necessary to pay attention to sectors and companies where foreign ownership ratios are currently increasing."

Despite various concerns, the 12-month forward earnings per share (EPS) of the S&P 500 has been rising for 12 consecutive weeks. Earnings forecast increases remain prominent in reopening-related stocks such as airlines, resorts, and entertainment, with Pfizer's earnings outlook also showing strength. The 12-month forward EPS of the KOSPI has continued to remain flat following last week. Among the weekly top gainers in earnings forecasts, industrial sector stocks such as Korea Shipbuilding & Offshore Engineering, LX International, and Hyundai Construction Equipment accounted for the majority.

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