South Korea's state pension fund has raised its presence in domestic-focused stocks in the second quarter as major exporters underperformed the broader market amid growing uncertainties in the global economy, data showed Monday.
The National Pension Service, the nation's biggest institutional investor, newly bought or purchased more stocks with greater exposure to domestic spending in the April-June period, particularly increasing bets in consumer staples, pharmaceuticals, clothing and media, according to market researcher FnGuide.
Consumer staples refer to companies that produce essential products, including food, tobacco and household items, which are less swayed by such external factors as currency exchange rates and global demand.
The NPS raised shares in Shinsegae Co., a retail giant, to 12.4 percent from 5.8 percent, and Hansol Paper Co., a paper and wood supplier, from 8.3 percent to 14.7 percent during the period.
On the other hand, the pension fund reduced shares in Hyundai Mobis Co. and Hyundai Wia Co., auto parts units of Hyundai Motor, as the cheaper Japanese yen eroded their price competitiveness.
The fund has been in the spotlight after upping its presence in two Samsung affiliates -- Samsung C&T Co., a construction and trading arm, and Cheil Industries Inc., the group's de facto holding firm.
The two Samsung units in May announced a 9 trillion-won ($7.9 billion) takeover deal, deemed crucial for the leadership change at the nation's largest conglomerate.
The NPS increased shares in Samsung C&T from 11.3 percent to 11.9 percent in the period to emerge as the single largest shareholder while newly acquiring a 5 percent stake in Cheil Industries.
U.S. hedge fund Elliot Associates, which holds a 7.1 percent stake in Samsung C&T, has waged an uphill battle against the proposed merger and tried to win the pension fund's support, but the NPS on Friday decided to back the merger deal in an upcoming shareholder meeting on Friday. (Yonhap)
