Foreign Investors Pump and Dump? Outrage Over Buy Reports Followed by Massive Sell-Offs

Foreign investment banks have repeatedly issued buy reports on Samsung Electronics and SK Hynix only to rank among the top net sellers in the market the next day, sparking complaints among investors that they may be hyping up the market to sell at a peak.

Global investment bank Morgan Stanley stated in a report published on the 6th that "the steepest correction seen in the memory industry so far appears to be over," adding that "current valuations offer an attractive tactical re-entry opportunity."

In other words, the analysis suggests that the decline in domestic memory stock prices has stopped and they are set to rebound.

In particular, the report drew attention because it was written by Shaun Kim, an analyst dubbed the semiconductor grim reaper after previously publishing a report titled "Winter is Coming."

Morgan Stanley is not the only one.

Other investment banks have also released consecutive reports stating that the South Korean stock market is undervalued and holds high investment value.

JPMorgan and Goldman Sachs also set relatively high forecasts for the KOSPI.

However, contrary to their positive outlooks, their actions were the exact opposite of their reports.

As of 11:00 AM today, Morgan Stanley ranked 4th and JPMorgan ranked 3rd among the top sellers of Samsung Electronics.

For SK Hynix, Morgan Stanley recorded the highest volume of net sales as of 11:00 AM today.

With the situation unfolding this way, retail investors have raised questions about the credibility of foreign reports, with some even expressing anger over whether they are deceiving domestic retail investors.

The securities industry explains that there is a reason behind this disconnect between research centers and frontline sales desks.

The primary cause pointed out is the role of securities firms as trading "gateways."

Because securities firms act as agents when clients execute purchases and sales in the market, if a client trading through Morgan Stanley sells Samsung Electronics, it appears as though Morgan Stanley is selling directly.

An official from the securities industry explained, "Discrepancies between foreign research centers and sales departments have frequently occurred for various reasons," adding, "Investors should reference reports while making sure to judge the market carefully on their own."

Reported by Jung Da-eun | Video by Lee Da-in | Design by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.