0234 GMT - The selloff in ADRs of Korean companies is unlikely to continue after South Korea's surprise brief period of martial law, says Lorraine Tan, regional director at Morningstar, in a note. The short-lived martial law declaration highlights that political risks and leadership issues remain a factor in South Korea, Tan says. Morningstar maintains its fair value estimates for South Korean companies under its coverage, as it sees the situation as a short-term event. "We think share price weakness is an opportunity to buy selectively," Tan says. SK Hynix is preferred as it benefits from artificial intelligence-related server demand, Tan adds. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
December 03, 2024 21:34 ET (02:34 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.