Shares of South Korea’s auto-related companies, in particular, those of the country’s auto giant Hyundai Motor Group units, have outperformed the overall market so far this month as foreign investors and local institutional investors together have shown voracious appetite for them.

According to Korea Exchange (KRX), the country’s transportation equipment-related stock index rose 3.3 percent from September 1 to 20, whereas the main Korea Composite Stock Price Index (Kospi) declined 0.3 percent over the same period. Entering September, both offshore and local institutional investors including social and public funds have been cherry-picking auto-related shares, KRX data showed.

In particular, shares of Hyundai Motor Group including Hyundai Motor Co. and Kia Motors Corp. have been heavily bought by offshore and institutional investors. Foreigners have net bought Hyundai Motor shares worth 132.7 billion won ($121 million) during the cited period, their second largest net purchase. They have also scooped up 55.4 billion won worth of Kia Motors shares.

Institutional investors preferred shares of Hyundai Mobis Co. They net purchased 177.2 billion won worth shares in the auto parts supplier while buying Kia Motors shares worth 43.1 billion won, Hyundai Glovis shares worth 13.1 billion won and Hyundai Motor shares worth 11.3 billion won.

The four units of Hyundai Motor Group were included in to top 10 buys by pension funds and Hyundai Mobis shares were their favorite with net purchase reaching 106.3 billion won.

Foreign and institutional investors’ demand for local tire companies’ stocks have also remained strong. They together have bought 19.5 billion won worth of Hankook Tire Co. and 15.0 billion won worth of Kumho Tire Co.

As of 02:26 p.m. on Thursday, Hyundai Motor shares were up 0.4 percent at 138,500 won, Kia Motors down 0.1 percent at 44,050 won, Hyundai Mobis up 2.3 percent at 288,000 won, and Hyundai Glovis 1.1 percent higher at 188,500 won.

Hankook Tire stocks were down 0.8 percent at 60,500 won and Kumho Tire up 0.5 percent at 10,900 won.

By Chae Jong-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]