FOREIGN sentiment on the South Korean market is not overly negative despite recent price falls, according to Thornton Management Asia in a report to clients.
The report said the announcement of the real name financial system two weeks ago came as a shock to the South Korean stock market but noted that volume selling in quality securities has not yet occured.
On August 13, the Composite Index dipped 32.37 points to 693.57, down 4.5 per cent, during a two-hour trading period which saw extremely low volume.
Saying the implementation was crucial to the anti-corruption campaign, the report said it would have a very good impact on South Korean companies in the long-term, as a result of improved transparency.
However, the report agreed that the stock market would have to suffer in the short-term.
US BOND prices have jumped in the last week, so Hong Kong investors holding both short and long-term US bonds should take note.
