JPMorgan: Korean Stocks Are Already Quite Cheap, but Buying Interest Is Lukewarm

JPMorgan noted in its latest report that, judging by share price levels and trading indicators, Korean stocks are already quite cheap, but buyers willing to keep adding to positions are disappearing. JPMorgan pointed out that a marked slowdown in listed companies' buybacks of their own shares is an important reason for the decline in Korean stocks. Since late August, buybacks have been the main force propping up the market, but Samsung Electronics has completed its buyback program, and SK Hynix's buyback is also nearing its end. Meanwhile, foreign investors continue to sell, and Korean domestic institutions show little willingness to buy. Because these funds already hold relatively large bearish bets, and share prices have clearly overshot to the downside, conditions for a short-term rebound are taking shape. But overall liquidity conditions remain fragile. Investors with a long-term orientation appear to still be waiting for market volatility to subside before entering.