Market analysts list potential stocks vulnerable to short sale once trade returns
Stocks that could potentially be removed from Korea's large-cap tracking benchmarks and MSIC index could become initial targets for shot selling once the cap hits May following a 14-month ban that started with Big -Cap issuance begins to be lifted. Selling short enables an investor to take advantage of falling stocks. The practice has been temporarily banned as part of the Covid-19 market since March last year, but is expected to resume on May 3. Stock short sales are typically made by overseas investors, so market experts believe that stocks that have strong overseas net selling or a sudden surge in borrowing could be short selling targets. According to Samsung Securities, from June 2017 to March 2020, offshore investors were 65 percent short in the Kospi market and 73 percent in the Kosdaq market. Samsung Securities selected Lotte Tour Development, Doosan Infracore, Hotel Shilla, Hanjin KAL, Samsung Heavy Industries, Toptec, Partron and BH as likely targets. Some overvalued...