Bourse operator Korea Exchange expects as much as $21.3 billion of net inflows as Korea is upgraded to a developed market by the FTSE Group.
European investors bought a net 6.3 trillion won ($5.1 billion) of Korean stocks between March and July, the bourse said in a statement yesterday. Possible motives include preparation for the nation¡¯s inclusion on Sept. 21 among developed nations by fund managers who track FTSE indexes, the bourse said. Other reasons may be the recovery in global financial markets and corporate earnings expectations. ¡°The portfolio adjustment may not happen all at once, and it may take some time,¡± Lee Kwang-soo, president of the exchange¡¯s Kospi market division, told reporters yesterday. ¡°But we presume some European money already flowed in.¡± Credit Suisse Group AG raised Korea to its most ¡°overweight¡± stock market in Asia in a Sept. 1 report, saying exporters may benefit from faster-than-expected global growth. The brokerage predicted the Kospi index may rise to 1,800 in six months, compared with 1,644.68 yesterday. The gauge has risen 46 percent in 2009, set for its biggest advance in four years. Korea Exchange Chairman Lee Jung-hwan said on Aug. 10 he is ¡°confident¡± that MSCI Inc. will also upgrade Korea to developed-market status. The country¡¯s status, which was under review for an upgrade by MSCI, was kept in the June revisions. Korea wasn¡¯t classified as a developed market because its currency isn¡¯t fully convertible and its stock market¡¯s real-time data didn¡¯t meet standards, MSCI said in June. Korea will be evaluated again in 2010. Bloomberg http://joongangdaily.joins.com/article/view.asp?aid=2909919 -- *Chalo Man -Swami Vivekananda.* http://www.youtube.com/watch?v=d5oOvxcff0g --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
