Materials, financial, and retail stocks drew steady buying from institutional and foreign investors on the Seoul bourse wobbly in the wake of last week’s upset result of the U.S. presidential election.

According to Korea Stock Exchange (KRX) Sunday, Posco, the nation’s largest steelmaker, pulled in foreign net buying of 66.6 billion won ($57 million) in the post-election market. Posco reported 59 percent on-year jump in operating profit in the third quarter that neared $1 billion.

Large bank stocks also remained foreign favorite in the volatile market. Foreign net buying in Hana Financial Group reached 48.9 billion won and 16.5 billion won in Shinhan Financial Group. Hana Financial Group reported 156.64 percent increase in third-quarter operating profit of 618.5 billion won.

E-Mart was another rare pick among the retail stocks that had been depressed amid prolonged slump in domestic demand. The superstore chain managed to add 10.9 percent rise in operating profit of $214.6 billion won in the third quarter.

Institutional players closely followed foreign buying pattern. They also paid attention to stocks with better outlook. They net-bought 72.1 billion won in KB Financial, 54. 1 billion won in Lotte Chemical, 51 billion won in Korea Electric Power Corp., and 45.9 billion won in S-Oil. Net buying in Amorepacific and SK Innovation reached above 38 billion won.

Solid third-quarter performance was their common appeal. S-Oil raked in 116.2 billion won in operating profit, up a whopping 620.1 percent from a year ago. KB Financial Group and SK Innovation also did better in the same period than last year, registering gains of 33.27 percent 12 percent, respectively, in operating income.

These stocks were untouched by the victory of political novice and maverick Donald Trump in the presidential election that rocked Asian stock markets due to his hostility towards trade powerhouses of Asia and emerging economies.

Shares of E-Mart and Shinhan Financial Group gained 7 percent outperforming the 1.3 percent rise in the main Korean Composite Stock Price Index between Wednesday and Friday. Shares of Hana Financial and KB Financial added 5.05 percent and 4.55 percent, respectively, during the period.

Given market jitters about the U.S. president-elect, investment is expected to stay selective on stocks that could benefit from U.S. infrastructure projects and deregulation in the local financial market.

By Chae Jong-won

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