Foreigners Switch 'Fate' Again in Just One Week... Selling KOSPI and Buying KOSDAQ

[Asia Economy Reporter Song Hwajeong] Foreign investors have turned to a 'selling' trend again in the domestic stock market after just one week.

According to the Korea Exchange on the 14th, foreign investors net sold about 193.8 billion KRW in the domestic stock market during the week from the 8th to the 12th. They sold 442.2 billion KRW in the KOSPI market but bought 248.7 billion KRW in the KOSDAQ market.

The stock most purchased by foreign investors last week was Celltrion. Foreign investors net bought 113.7 billion KRW worth of Celltrion last week. This was followed by SK Hynix with 73.6 billion KRW. Other net purchases included Samsung SDI (66.8 billion KRW), Samsung Electro-Mechanics (62.3 billion KRW), Celltrion Healthcare (62.3 billion KRW), Samsung Biologics (55.7 billion KRW), LG Innotek (39.5 billion KRW), Hyundai Motor (38.4 billion KRW), Samsung C&T (28.0 billion KRW), and Amorepacific (23.9 billion KRW).

The stock most sold by foreign investors last week was Samsung Electronics. Foreign investors net sold 179.3 billion KRW worth of Samsung Electronics last week. This was followed by SK with 80.3 billion KRW sold. Other top net sales included SK Telecom (51.4 billion KRW), NAVER (49.6 billion KRW), LG Household & Health Care (46.1 billion KRW), Kakao (42.7 billion KRW), Shinhan Financial Group (38.4 billion KRW), Hana Financial Group (37.5 billion KRW), Samsung Electronics Preferred Shares (36.8 billion KRW), and Macquarie Infrastructure (35.5 billion KRW).

As concerns over the second wave of the novel coronavirus infection (COVID-19) increase, investment sentiment has weakened, and it is expected to take more time for foreign investors to return. Roh Donggil, a researcher at NH Investment & Securities, said, "Doubts about U.S. growth rates and concerns over the second wave of the epidemic have weakened KOSPI investment sentiment," adding, "Although the intensity of foreign investors' net selling on the KOSPI has weakened, the lack of clear signs of inflows from emerging market passive funds lowers the possibility of stabilizing above the 2200 level." Roh added, "For inflows from emerging market passive funds, stabilization of emerging market currencies and resolution of doubts about U.S. growth recovery are necessary."

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