South Korea’s National Pension Service (NPS) made handsome profits after increasing investments in chemical, pharmaceutical and car-related companies in the nation’s stock market this year.

According to Seoul-based market data provider FnGuide on Sunday, the country’s biggest institutional investor and the world’s third largest pension fund managing over 500 trillion won ($440 billion) upped investments in 86 companies it already held 5 percent or higher stake as of last Thursday and the stock price of those companies has risen 3.55 percent on average so far this year.

It also held more than 5 percent stakes in new 22 companies.

NPS acquired more stakes in 12 chemical, 11 auto-related firms and 10 pharmaceutical companies. The institutional investor raised stakes by more than 2 percentage points in Korea Petro Chemical Ind Co., Kumho Petro Chemical Co., Lotte Fine Chemical Co. and Namhae Chemical Corp. NPS increased a stake in Korea Petro Chemical to 8.16 percent from 5.01 percent late last year and Kumho Petro Chemical to 12.04 percent, up 2.71 percent points.

NPS also added stakes in the nation’s major auto parts maker Mando Corp. this year by 3.74 percent stake to own an 11.62 percent stake. Mando stock price has surged 63.75 percent so far this year, the highest among companies the NPS has upped its investments this year. The pension fund also increased its stake in Hyundai Mobis Co., Hyundai Motor Group’s auto components making arm, by 2.01 percentage points. Kumho Tire Co., Nexen Tire Corp. and Hankook Tire Worldwide Co. also attracted additional investments from NPS, and their share prices have soared more than 44 percent so far this year. NPS has been steadily increasing its stakes in S&T Motiv Co., Sangsin Brake and Korea Electric Terminal Co.

With rising expectations on the growth of self-driving car and green car sectors, the Korea’s biggest institutional investor has bet more on auto parts companies.

NPS has also remained bullish on pharmaceutical companies. It added Ilyang pharmaceutical Co. to its portfolio by buying a 5.14 percent stake in the company. It owns more than 13 percent stakes in Chong Kun Dang Pharmaceutical Corp. and Dong-A Socio Holdings Co. So far this year, the pharmaceutical companies have gained, except Hanmi Pharmaceutical Co. and Suheung Co. Shares of Daewon pharmaceutical Co. climbed the most of 17.40 percent so far this year, while shares of Daewoong Pharm, Bukwang Pharmaceutical Ind Co. and Korea United Pharm Inc. increased more than 13 percent.

By Chae Jong-won

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