ANALYSIS What's behind scarcity of 'sell' recommendations by Korean brokerages?
Authorities plan to strengthen independent stock research firms By Anna J. Park Only a fraction of stock analysis reports published by Korean securities companies advise investors to take a “sell” position, while the overwhelming majority of them offer “buy” recommendations. According to data revealed by Rep. Kang Byung-won of the main opposition Democratic Party of Korea, out of 4,344 stock analysis reports published by 32 local securities firms from July 2021 to June 2022, only three ― or 0.07 percent ― contained sell recommendations. In contrast, 92.2 percent of the reports had buy ratings, while another 7.8 percent of the reports recommended hold.The lopsided proportion of buy positions was in stark contrast to the actual bearish market sentiment during the surveyed period. The benchmark KOSPI index fell by nearly 30 percent and the tech-heavy Kosdaq index declined by about 28 percent as investors took profits after a bull market in 2020.The skewed pattern has not changed at all this year.According to Korea Financial Investment Association (KOFIA) data, th
