Korean stock market braces for NPS rebalancing sell-off

The South Korean stock market faces a potential supply overhang as the National Pension Service, the world's third-largest pension fund by total assets, is expected to rebalance its domestic stock holdings from Wednesday, fueling concerns over a sizable sell-off.

Though the benchmark Kospi's blistering rally is expected to have pushed its domestic equity weighting well above target levels, the pension fund had deferred rebalancing through the end of June, allowing it to maintain its expanded sto ...