Foreigners Sell 'Palja' for 3 Consecutive Weeks... 3.6 Trillion Won Sold

[Asia Economy Reporter Song Hwajeong] Foreign investors have continued their selling streak for three consecutive weeks. Last week alone, they sold more than 3.6 trillion won in the domestic stock market.

According to the Korea Exchange on the 1st, foreign investors net sold approximately 3.648 trillion won in the domestic stock market during the week from the 24th to the 28th of last month. They sold 3.4615 trillion won in the KOSPI market and 186.3 billion won in the KOSDAQ market, respectively.

The stock most purchased by foreign investors last week was Hanjin Kal. Foreign investors net bought 55.9 billion won worth of Hanjin Kal last week. This was followed by Samsung Electro-Mechanics with 50.9 billion won purchased. Other net purchases included Kakao (39.7 billion won), LG Uplus (39.6 billion won), Samsung C&T (28.3 billion won), NHN Korea Cyber Payment (16.7 billion won), Iljin Materials (16.5 billion won), NCSoft (16.5 billion won), Hyundai Elevator (14.3 billion won), and Douzone Bizon (10.7 billion won).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold 1.6128 trillion won worth of Samsung Electronics last week. This was followed by SK Hynix with 510 billion won sold. Other top net sales included Samsung Electronics Preferred (152.3 billion won), Hyundai Motor (125.6 billion won), SK Innovation (102.1 billion won), Korea Electric Power Corporation (76.2 billion won), Samsung SDI (70.9 billion won), LG Household & Health Care (67.8 billion won), Shinhan Financial Group (65.9 billion won), and Hotel Shilla (63.8 billion won).

The market rebound is expected to require more time. Labor Gil, a researcher at NH Investment & Securities, stated, "For a meaningful index rebound, confirmation of a dovish stance from the U.S. Federal Reserve (Fed) and signs that the domestic COVID-19 case numbers have passed their peak are necessary." He added, "Although more time is needed for confirmation, this is a period where the benefits of selling are not significant." Furthermore, Researcher Noh said, "The undervalued range of the KOSPI estimated by book value is below 2000 points, which corresponds to the price-to-book ratio (PBR) level recorded during the financial crisis." He continued, "A KOSPI in the 1900-point range makes buying responses more reasonable than selling. Considering the reduction of foreign investors' futures buying positions and the weakness in the U.S. stock market, the market will likely explore recovery factors while monitoring the COVID-19 infection trend rather than a rapid V-shaped rebound."

This content was produced with the assistance of AI translation services.