Institutional sales tax after Lunar New Year, increased supply and demand anxiety
Pension Fund Selling Rally… I sell 30 trillion more in the future
Engines, electric vehicles and hydrogen-related stocks are included.
Employees are working at Hana Bank in Myeong-dong, Seoul on the 10th. On this day, KOSPI closed the transaction at 3100.58, up 15.91 points (0.52%) from the previous trading day. [이미지출처=연합뉴스]
[아시아경제 이선애 기자] As institutional investors continue to sell in the new year, it has emerged as the biggest selling force in the domestic stock market this year, and it is expected to continue to sell net after the Lunar New Year holiday.
Net selling of about 24 trillion won in institutions
According to the Korea Exchange on the 13th, the institution is continuing to sell in the new year. From January 4, the first trading day to February 10, the day before the Lunar New Year holiday, the institution’s net selling amount is KRW 24,600.4 billion. During the same period, foreigners net sold 4.77 trillion won, and only individuals alone net bought 29.904.8 billion won, defending against the decline in the stock price. All investment entities of the institution are participating in net selling. Financial investment, insurance, investment trust, private equity, other finance, pension funds, etc. are all sold off. In particular, the number of pension funds is the largest. Pension funds sold 10,856.3 billion won worth.
The pension fund has been selling for the longest period. According to the classification of investors classified by the Korea Exchange, pension funds include pensions, funds and mutual aid associations, as well as the state and local governments. This includes the national pension, public servants’ pension, private school pension, faculty and staff mutual aid association, military mutual aid association, administrative mutual aid association, and postal service headquarters. The analysis is that the previous-generation net selling of pension funds is a dimension of asset allocation according to stock price rises. Pension funds are weighted according to the fund management plan established in advance. In the case of the national pension, the target share of domestic stocks was 17.3% by the end of last year, and this year was reduced by 0.5 percentage points to 16.8%. The national pension’s share of domestic stocks was 19.6% as of the end of November last year, exceeding the target share by 2.3 percentage points.
The sale of pension funds was centered on the main parking lot (automobiles, chemicals (batteries), electronics (semiconductors)), which had increased significantly. From January 4th to February 10th, pension funds sold Samsung Electronics (3,363 trillion won) the most. It was followed by Hyundai Motor Company (606 billion won), LG Chemical (5900 billion won), and SK Hynix (536 billion won).
Pension funds sell 30 trillion won more
Stock market experts believe that the mass selling of institutions will continue in the week following the Lunar New Year holiday. Each has a different management strategy, and as there are entities exposed to redemption pressures such as investment trust and private equity funds that are forced to sell stocks, it is believed that the flow of institutional sales will not end in the short term. In particular, in the case of pension funds, the general view of stock prices is that they will still sell about 30 trillion won.
Noh-gil, a researcher at NH Investment & Securities, said, “Considering the effect of the increase in the index, the pension fund’s domestic equity target is expected to rise to 22.5%. I judge.” He added, “Considering the average daily KOSPI net selling rate for pension funds this year, we will be able to achieve the target weight in early June.” It will slow down.”
After all, in the domestic stock market, the supply and demand of individuals and foreigners, who were the main players of the strong market in January, is important.
Lee Jae-sun, a researcher at Hana Financial Investment, said, “For the trend to rise in the index, it is important to maintain the strength of individual purchases, which was the subject of the bull market in January, or to improve supply and demand for foreigners, which determined the direction of the index. When the index level is determined, the influence of foreigners is inevitably large, but the supply and demand for foreigners after the beginning of the year is neutral.”
Dae-Joon Kim, a researcher at Korea Investment & Securities, said, “As individuals continue to receive the volume of the institution’s pouring out, the index itself is unlikely to result in a significant decline.” But, as in the past, foreigners will decide the direction of the market. You have to look closely.”
Electric vehicle and hydrogen related stocks in the shopping cart
Institutions, the largest selling force in the domestic stock market this year, are also attracting attention as they consistently contain stocks related to electric vehicles and hydrogen economy.
SK (12 billion won) is the most stocked by the institution until the 10th of the new year. Subsequently, S-Oil was 100 billion won, POSCO Chemical 94 billion won, Ecopro 89 billion won, Korea Zinc 87 billion won, Big Hit 79 billion won, LG Innotek 76 billion won.
SK is considered one of the leading domestic hydrogen fuel cell-related stocks. SK established Bloom SK Fuel Cell, a joint venture (JV) with Bloom Energy, the world’s largest hydrogen fuel cell company. Doosan Fuel Cell is evaluated as one of the few companies in the world that possesses the source technology for fuel cells.
EcoPro is the largest shareholder of Ecopro BM, a leading domestic secondary battery company. Jeong Yong-taek, head of the IBK Investment & Securities Research Center, said, “Even if there is a valuation burden (share price relative to earnings) right now, it is highly likely to improve in the long term.” Analyzed.
Reporter Sunae Lee [email protected]