Here's a synopsis of a TWST (The Wall Street Transcript) interview with Richard Samuelson (RS), Seoul Branch Manager and Head of Research for SBC Warburg.
Referring to the Korean market in general, RS said "It may be a long slow climb; it may never get very far, but in all probability we've seen the worst of the bear market which lasted from Novermber 1994 to January 1997, during which period the index fell from about 1140 to 611... It fell 47 percent, a 25 month bear market.
"So that was a pretty tough go for international investors, I dare say. The market is recovering; volumes are recovering from very, very low levels. Interestingly enough, quite a few US houses have taken an interest in this market in terms of opening up either a representative office, or more frequently now, a branch, and they are increasing their investment [he then mentions Merrill, Morgan Stanley, Goldman Sachs, Salomon Bros]
TWST: Do you see more foreigh investment money flowing into Korean equities?
RS: Lately, yes. You see, Korea's a bit peculiar in terms of the way it managers that [then goes on to discuss the limits placed on foreigh
, that the limit will increase from 23% to 26% (this is probably in palce as of 1 Nov.), but he ovserved that foreigners actually own far less than the government would allow them to own
TWST Who do you put in the top 10 or top 12 of the major companies now for foreign investment interest?
TS: Samsung Electronics; I mentioned POSCO. I would include Samsung Fire and Marine Insurance Co; I would include Shinnhan Bank ... KOOKmin Bank. I would probabluy also include the really A-rated companies. That's probably about it. Other companies in terms of quality of earnings, in terms of dominating their respective markets, I'd have to include KEPCO, the big utility ... in that group."
Sorry gotta go now, will continue this later! |
