Kathreb

Yesterday I saw a cartoon in the Australian news of a bunch of sheep stock traders debating about whether they were bulls or bears. I thought it was rather amusing, but even more so after reading about the undervalued status of some Korean shares. I noted earlier in the year in a blog that, in my humble opinion, there was no reason for the Korean stockmarket to be heavily affected by the global economic downturn. The budget is due to be balanced ahead of the 2003 schedule, exports have been increasing steadily at the same time as strong consumer demand which was previously boosting the economy began to settle to more realistic levels. Bank profitability remains good and privatisation of Korea public companies is on track and should have strong momentum to last into the new government. Indeed, in the build up to the election the political climate remains stable and relations with the North are the best they have been in a while. But despite all this, foreign investment into the Korean Stock Market continues to decline. While overseas investors may have little to spare for investment at the moment I maintain my original view that the KSE itself is looking good and at the moment some of the stocks are going at bargain prices that should be due to reap some benefits when the global economy begins to lift.

However the negative side exists as concerns mount over a Korean hard landing and further declines in an already plummeting market.

As for me, I remain optimistic for the Korean market

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