Battered Korean Banks Have A Lot Of Room To Rebound
By Emerging Money:
By Scott Martin
Three of the nine most liquid Korean stocks traded in the United States are banks. All three suffered massive losses in the selling of August and all have regained much of their footing. Is the rally over or just getting started?
At right: Vertical growth in Wangsimini, Seoul.
Woori Financial (WF), the smallest of the trio at $8 billion in market cap, plunged the farthest and has so had the most ground left to recover. Before the August sell-off, WF spent about a year grinding in a $33 to $43 range, only to have half its value disintegrate over the next three months. Even now, after a 50% rally, we’re still only back at the bottom of the 2010-11 channel, with another 30% or so of room on the chart before WF even challenges the old ceiling. And the damage has left WF looking deeply distressed. ThisComplete Story »