JPMorgan Asset Management and Charlemagne Capital Ltd. have started to buy South Korean equities after they are said to be at their lowest valuations since 2009. Earnings projections for South Korean companies rose to a record as a weaker won increases export activity.
JPMorgan Asset Management had said that South Korean exporters should benefit as the won began dipping from a four-year high against the yen. Charlemagne's London-based co-chief investment officer, Julian Mayo, purchased Samsung Electronics Co. shares in June. Last month, Samsung Electronics Co.'s price-to-book ratio had declined to an 18-month low.
The MSCI Korea Index lost 7.2% as worries of reduced U.S. stimulus generated capital outflows from emerging-market stocks last month. The Korean index dipped in its net assets this month bringing the index its lowest valuation since early 2009.
"Long-term investors should be buying Korean stocks," Mayo said in an interview in Seoul. "If companies we like become cheaper, I expect we'll buy more."
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