[Alpha Biz=(Chicago) Reporter Paul Lee] While foreign investors are selling large-cap stocks in the local stock market day after day, selling is concentrated on Kakao.

According to the Korea Exchange on the 29th, foreigners sold 175 billion won worth of Kakao shares this month. It ranked seventh in the KOSPI market during the same period.

Foreigners have taken Kakao out of the investment basket every day since the 13th. Foreign ownership also decreased by about 0.6 percentage point from 25.95 percent earlier this month to 25.32 percent on the same day.

Stock prices are also weak due to the relentless selling by foreigners. Kakao's stock price fell 12.65% this month. The stock price, which was 56,100 won earlier this month, fell to 49,000 won. It is the first time in seven months that Kakao's stock price has fallen to around 40,000 won since its closing price in November 2022.

Analysts say that concerns over earnings in the second and fourth quarters have grown as the economic downturn has delayed the recovery of the advertising market. According to financial information provider FnGuide, Kakao's operating profit in the second and fourth quarters is expected to recover to KRW 142.8 billion, compared to the previous quarter (KRW 71.1 billion), but it is expected to fall 16.50% from a year earlier.

On an annual basis, Kakao's estimated operating profit is expected to reach 589.5 billion won this year, up slightly (1.58 percent) from the previous year, but its net profit is expected to fall 50 percent to 523.7 billion won.

 

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