◆Ajou Economic Major News
▷Foreign investors have sold 38 trillion won in the KOSPI over 10 consecutive trading days, while retail investors have responded with 11 consecutive days of net buying.
- Foreign investors have engaged in net selling for 10 straight trading days in May, offloading approximately 38 trillion won. In contrast, individual investors have been net buyers for 11 consecutive days, absorbing the sell-off.
- Analysts suggest that the surge in U.S. interest rates and concerns over overheating in the KOSPI are driving the foreign selling trend.
- However, the proportion of foreign ownership reached a record high of 39.58% on May 13, indicating that despite the selling, foreign ownership has actually increased.
- This is interpreted as the value of foreign-held stocks rising significantly due to the stock price increases, outpacing the volume of net selling.
- Market analysts view the current foreign investor behavior as a 'weight adjustment' rather than a complete exit from the Korean stock market, indicating profit-taking and portfolio rebalancing.
◆Key Reports
▷Will AI Kill Bonds? [Meritz Securities]
- Meritz Securities analyzes that the spread of AI is creating a more favorable environment for the stock market over bonds by improving productivity and growth rates.
- While AI's labor replacement and resource allocation efficiency could contribute to long-term price stability, short-term large-scale infrastructure investments are causing inflation and rising procurement costs, putting pressure on the bond market.
- Concerns are raised that the bond market may remain weak until the investment competition among global hyperscalers in AI infrastructure stabilizes.
- Recent global interest rate hikes are attributed to a combination of factors, including supply-driven inflation from soaring oil prices in the Middle East, deteriorating fiscal health, and demographic changes.
- Meritz Securities diagnoses that declining savings and increasing social security costs in major countries like the U.S., U.K., and Japan are structurally increasing pressure for rising interest rates.
◆Major Announcements After Market Close (May 20)
▷Daewoong Pharmaceutical has transferred ERA technology rights to Hanol Bio instead of Turn Bio in the U.S.
▷The exchange has decided to delist Geumyang due to 'refusal of audit opinion.'
▷Waivers has decided on a 5-for-1 stock consolidation.
▷Fantagio has changed its largest shareholder from 'Mirae I & G and two others' to 'X and one other.'
▷JTC has decided to retire 15 billion won worth of treasury stock.
▷Remed has decided to enter into a trust agreement for the acquisition of 2 billion won worth of its own shares.
◆Fund Trends (As of May 19, excluding ETFs)
▷Domestic equity: +79 billion won
▷Overseas equity: -3.2 billion won
◆Key Schedule for Today (May 21)
▷South Korea: Producer Price Index (April)
▷Eurozone: Manufacturing and Services PMI (May)
▷United States: Housing starts and permits (April), Manufacturing and Services PMI (May)
* This article has been translated by AI.
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