November of Promise, Will Foreigners Return?

Massive Net Buying of Kakao Shares for 2 Consecutive Weeks This Year as Well

[Asia Economy Reporter Song Hwajeong] Since the beginning of this month, foreign investors have continued their buying spree, raising expectations for a 'buying' turnaround in November this year, following last year.

According to the Korea Exchange on the 15th, foreign investors net purchased 557.5 billion KRW in the domestic stock market last week, maintaining a buying trend for two consecutive weeks. Since the beginning of this month, they have bought 941.1 billion KRW. While continuing their buying momentum in the KOSDAQ, last week they also turned to buying in the KOSPI. They purchased 245.5 billion KRW in the KOSPI and 311.9 billion KRW in the KOSDAQ. Since the beginning of this month, foreign investors have net purchased 235.5 billion KRW in the KOSPI and 705.7 billion KRW in the KOSDAQ, respectively.

Foreign investors showed a strong interest in Kakao stocks. The most purchased stock last week was Kakao Games. Foreign investors net bought 175.9 billion KRW of Kakao Games last week, purchasing for six consecutive trading days. Following that, they net bought 148.3 billion KRW of Kakao Bank, also buying for five consecutive days. Additionally, they acquired 36.6 billion KRW and 24.1 billion KRW worth of Kakao and Kakao Pay, respectively. Foreign investors showed a clear buying trend for these two stocks as well, purchasing for two and three consecutive days, respectively, revealing a distinct buying stance on Kakao stocks.

As foreign investors have shown buying momentum since the beginning of this month, expectations for a buying turnaround are growing. Last year, foreign investors also demonstrated strong buying in November, leading the KOSPI, which had been trapped in a box range, to an all-time high. This year, since the KOSPI has been stuck in a box range since the second half, it is expected that if foreign investors actively buy, an escape from the box range will be possible. However, for foreign investors to switch to buying, factors such as the easing of global supply shortages are likely necessary. As production operating rates gradually increase, inflationary pressures caused by supply shortages are expected to ease, and major energy prices and logistics costs, which had fueled inflation concerns, are showing signs of stabilization. Seo Jeonghoon, a researcher at Samsung Securities, said, "Considering the possibility of changes in economic conditions, we can expect an inflow of global passive funds," adding, "This will increase preference for large-cap stocks that have been in a long-term sideways trend at the bottom." Seo also added, "In the case of domestic automobile and IT hardware (H/W) sectors, price attractiveness is currently emerging, and recently foreign investors have been selectively accumulating these, which is also positive."

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