HSBC has upgraded its rating on South Korean stocks from underweight to neutral.

Herald van der Linde, Head of Stock Strategy for HSBC in the Asia-Pacific region, stated in a report that in recent months, the concentration of positions held by foreign investors in the South Korean stock market has decreased. It is expected that this will pave the way for support from local demand and strong profit prospects. The bank had previously rated the Korean market as underweight due to concerns about the situation in the Middle East and capital outflows, but has now upgraded the rating to neutral. The analyst mentioned that the profit prospects for Korean stocks are still attractive, with most of the growth expected to come from Samsung Electronics and SK Hynix.