The National Pension Service (NPS) is approaching the expiration of its grace period for domestic stock rebalancing. As the deadline nears next month, financial markets are closely monitoring the potential for the fund to reduce its holdings in Korean equities. This anticipated shift in portfolio weight could lead to increased selling pressure on the domestic market. Analysts suggest that the NPS may move to align its assets with predetermined target ratios. Such a move is expected to introduce significant volatility into the stock market. Consequently, brokerage firms and investors are on high alert regarding the timing and scale of the divestment. The outcome will depend on the fund's final decision to implement the rebalancing strategy.
