"Rebound Betting" Retail Investors Buy Large-Cap Stocks at Low Prices

Samsung Electronics and SK Hynix Sold
Foreigners Secure Reverse Investment
SK Square Most Net Bought

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Individual investors are showing a 'contrarian investment move' by selling Samsung Electronics and SK Hynix, whose prices rebounded due to concentrated buying by foreigners, while buying the stocks most sold by foreigners.

According to the Korea Exchange on the 24th, the stock most purchased by individual investors this month up to the previous day is SK Square (354.4 billion KRW). This is followed by LG Chem (348.9 billion KRW), Samsung SDI (348.9 billion KRW), Samsung SDI (329.0 billion KRW), Kakao (248.6 billion KRW), and Naver (NAVER, 180.7 billion KRW).

These stocks share the commonality of having been highly anticipated for future growth and showing a steep rise this year, but recently their prices have weakened. SK Square was spun off from SK Telecom's semiconductor and information and communication technology (ICT) investment division and listed on the 29th of last month, but its closing price on the previous day was 14.61% lower than on the first day of listing.

LG Chem recorded its lowest price of the year (622,000 KRW) on the 22nd as LG Energy Solution, established by spinning off the electric vehicle battery division, is set to go public (IPO) early next year. Samsung SDI's closing price on the previous day was 21% lower than this year's highest point, and Kakao and Naver also fell 33.33% and 14.48% respectively from their highest points this year.

Individual investors have net sold stocks worth 6.0032 trillion KRW this month, with Samsung Electronics (2.6586 trillion KRW) and SK Hynix (938.4 billion KRW) accounting for more than half. These two stocks have been the focus of foreign investors' buying this month, with Samsung Electronics net purchased at 2.5782 trillion KRW and SK Hynix at 597.5 billion KRW.

On the other hand, foreigners have net sold the stocks most bought by individual investors this month, SK Square (435.3 billion KRW) and Naver (171.5 billion KRW), the most.

Experts have supported the rebound of stocks with concentrated buying by individual investors. Jae-min Ahn, a researcher at NH Investment & Securities, analyzed, "Among investors who came to hold SK Square due to the corporate spin-off, dividend-focused stable investors sold SK Square, which does not pay dividends immediately," adding, "Since a large quantity has come onto the market in a short period, the negative impact due to supply and demand has been settled for now." Ho-yoon Jung, a researcher at Korea Investment & Securities, stated, "Considering Naver's growth potential and the smooth expansion of new businesses such as the metaverse, it is judged that some consideration is needed regarding the timing and price of purchases."

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