Foreigners sell POSCO Holdings shares while retailers on buying mode

[Photo by Lee Chung-woo]

POSCO Holdings Inc., the parent of South Korea’s biggest steelmaker POSCO, has seen a sharp decline in the share of foreign ownership in its stock amid a strong net buying by individual investors.

According to the Korea Exchange on Wednesday, foreigners held 44.1 percent of POSCO Holdings shares as of now, down from 51.4 percent at the end of last year. In September 2021, they held 55 percent.

POSCO Holdings had been considered a steel stock but it is becoming a mixed stock focusing on secondary battery and food based on business expansion by its subsidiaries POSCO Future M Co. and POSCO International Corp.

Offshore investors, on the other hand, have been increasing their holdings of Hyundai Steel Co., which has seen the share rise to 24.1 percent from 21.9 percent at the end of last year.

POSCO Holdings has seen the largest net purchases by individuals in the main Kospi and secondary Kosdaq markets this year.

Over the 100 days, retail investors net purchased 2.6 trillion won ($2 billion) in POSCO Holdings shares, which is more than two times that of 1.2 trillion net purchase of EcoPro Co. shares, and 755.3 billion won of EcoPro BM Co. shares.

According to the company’s business report, there were 310,000 minority shareholders at the end of 2022, up from 180,000 in 2020.

The growing demand for POSCO Holdings shares among individual investors comes as the company is highlighted as a secondary battery materials stock with a large market capitalization in the Kospi market.

POSCO, in the meantime, announced Wednesday that it has joined hands with Japanese automaker Honda Motor Co. to boost partnership in the electric vehicle (EV) business. The two signed a comprehensive agreement in Seoul on Tuesday in the presence of POSCO Group Chairman Choi Jeong-woo and Honda President and Chief Executive Officer Toshihiro Mibe.

Under the agreement, POSCO and Honda will strengthen their existing cooperation on steel and further collaborate on the secondary battery materials sector that involves cathode and anode materials and solid-state battery materials.