The move to convert the purchase after a five-year selling spree of pension fund

The move to convert the purchase after a five-year selling spree of pension funds.

The pension fund has been selling stocks for four years since April 2020. Throughout this period, it sold shares with domestic institutions such as investment funds, insurance, banks, and private equity funds, and the sale of such institutions has contributed to the relative weakness of the domestic stock market and the undervaluation of stock prices.

Foreigners who sold stocks in 2020 have already bought and collected ridiculously cheap stocks sold by domestic institutions and the general public in advance for more than two years, but domestic institutions are playing a role in raising prices by belatedly buying stocks already bought by foreigners as a strategy to buy cheaper valuations rather than buying cheaper valuations as if the strategy is wrong.

In any case, if pension funds, investments, insurance, private equity funds, and banks that have been selling stocks for four years are converted to stock purchases in the future, the stock market will be in an environment where a strong rise that was previously unusual. Foreigners who have already purchased do not suppress prices, and if an institution that has joined the purchase simultaneously purchases them, the market will move in a completely different supply and demand system from the past four years.

In any case, domestic institutions sold stocks until April 2024 (the end of March for pension funds), contributing to reduced liquidity in the market and worsening economic sentiment, which, coincidentally or intentionally, affected the April general election.