Pension Funds Net Buy 143.9 Billion This Month... On the Verge of Monthly Net Buying Turnaround

[Asia Economy Reporter Park Jihwan] Public pension funds, including the National Pension Service, have been net buyers of domestic stocks for the first time since the beginning of the year. The nearly year-long mechanical net selling streak by pension funds is coming to an end, and a monthly net buying turnaround is expected.

According to the Korea Exchange on the 30th, pension funds and others have net purchased 143.9 billion KRW worth of KOSPI and KOSDAQ stocks from the beginning of this month until the 28th.

If pension funds do not net sell more than 143.9 billion KRW on the 31st, it will mark the first monthly net buying on a monthly basis in 11 months since June last year.

Pension funds had been net buyers of domestic stocks continuously from February last year, when the stock market began to plunge, until May last year, when the KOSPI recovered to the 2000 level. However, since then, they have maintained a net selling stance. In particular, from the end of last year to March this year, they set a record for the longest consecutive net selling period of 51 trading days. In April as well, they showed a selling dominance by net selling 2.6865 trillion KRW.

However, since the beginning of this month, the amount purchased has exceeded the amount sold, and in terms of days, out of 18 trading days so far, there have been 10 net buying days, surpassing the 8 net selling days.

Some believe it is difficult to say that pension funds have completely switched to a net buying stance, but for now, the possibility of the mechanical net selling streak resuming is considered low.

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