Funds favouring South Korean domestic stocks

As the South Korean market emerges from the past year's recovery, fund managers are expecting the br...

As the South Korean market emerges from the past year's recovery, fund managers are expecting the broad-based rally to narrow in 2006. That said, the picture is still positive with domestically orientated and leisure stocks now looking the most attractive. Mark Williams, manager of the F&C Pacific Growth fund, favours the Korean market and the country is one of the biggest overweights in his portfolio at just under 30%. This is because, comparing the return on equities with the price to book, Korea seems to offer better opportunities than the rest of the region, he says. However, William...